Oil

Energy traders weren’t surprised to see the rally in oil prices slow. WTI crude fell after a surprise rise in US stocks and following a bloodbath on Wall Street that sent risky assets into a tailspin. Crude prices may not have a one-way ticket to $100 Oil, but supply-side fundamentals certainly support that could happen by summer. Upcoming trading sessions could be challenging for energy traders as oil prices could move further depending on investor positioning ahead of Wednesday’s FOMC policy decision and on a handful of brewing geopolitical risks, including tensions. between Russia and Ukraine, Iranian nuclear talks and developments with global handling over North Korea.

The outlook for crude demand also provides continued positive support for oil prices throughout the year. Schlumberger CEO Olivier Le Peuch said, “Absent any further COVID-related disruptions, oil demand is expected to exceed pre-pandemic levels before the end of the year and strengthen further in the future. 2023”. The oil market is expected to remain very tight and if we have any disruptions in production this should easily drive prices much higher.

Gold

Gold prices edged lower as commodities were punished after Wall Street entered a major de-risk mode. Normally, gold does well when Treasury yields fall, but today it was all about getting back to cash. Earnings were disappointing and fears over how the economy will handle rising interest rates have many investors worried that risky assets will continue to slide next week.

Given that large parts of the economy will continue to perform well this year despite higher borrowing costs, gold will eventually strike the right balance to become both a safe haven and a hedge against inflation. Gold is unlikely to be vulnerable to excessive panic selling in the market given the strength of the economy, so if prices can clear the $1850 barrier after the Fed, the path to $1900 should be there. .

Bitcoin

Bitcoin quickly moved from a consolidation pattern to a house of pain. The world’s biggest crypto plunged as crypto traders cut portfolio risk after the bloodbath in stocks and ahead of next week’s FOMC policy meeting. Risky assets didn’t stand a chance today and the selling momentum accelerated after Bitcoin broke below the $40,000 level. Bitcoin remains in the danger zone and if $37,000 breaks, there is not much support until the $30,000 level.

This article is for general information purposes only. It is not investment advice or a solution for buying or selling securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for everyone. You could lose all your deposited funds.

With over 20 years of trading experience, Ed Moya is a senior market analyst at OANDA, producing up-to-the-minute cross-market analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. . His particular expertise covers a wide range of asset classes, including currencies, commodities, fixed income, equities and cryptocurrencies. During his career, Ed has worked with some of the major forex brokerages, research teams and information services on Wall Street, including Global Forex Trading, FX Solutions and Trading Advantage. Most recently, he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks, including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His opinions are endorsed by the world’s most renowned news agencies including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.