WTI Crude Oil January-2016 Futures
Oil is currently trading @ 37.13 and consolidating its most recent gains. Resistance is @ 38.00 and support @ 36.50 – 36.00.
Several factors are weighing in on the price of oil:
- The oil market, like most others, is awaiting the Fed Reserve interest rate policy decision later today @ 2PM ET.
- In addition to this, there is also the EIA (Energy Information Administration) oil inventory supply report which is released @ 10:30 ET. Consensus expectations are calling for a drawdown of -1.4mm barrels. However, recent data by the API (American Petroleum Institute) shows supplies grew by 2.3mm barrels.
- Late Tuesday, U.S. lawmakers lifted the ban on oil exports. While this is positive news for producers, the potential increase of supply in the global energy markets may continue to pressure prices.
Gold February-2016 Futures
Currently trading @ 1073.00 and being up over 11 points, one might not even suspect the Fed is king rates. However, it looks like gold is telling us that the pace of future interest rate increases will be moderate to dovish. Resistance is @ 1080-1090 and support is @ 1060 and 1045. (6:02am PT)