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Oil survives inventory scare

Oil is getting more love today, with WTI moving back above $70 a barrel .

Monday’s growth fears were seemingly overdone and a move above $70, should it close there, could be a very bullish signal. A move back above here takes out previous support and overcomes a potential psychological barrier.

The EIA inventory report initially sent prices lower but they rebounded quickly, with fuel demand still seemingly very strong and risk appetite providing further support.

Delta poses a clear risk to the near-term outlook as countries re-impose restrictions or maintain them for longer but as we’ve seen throughout, OPEC+ is ready to be flexible as and when it’s necessary.

Gold consolidating around $1,800

Gold is hovering back around $1,800, with the improvement in risk appetite and higher US yields weighing. The dollar is trading a little lower after making small gains earlier on the back of those higher yields.

The yellow metal has been consolidating around these levels for the last couple of weeks and, despite some activity at times, nothing much has changed.

We seem to have entered a wait-and-see phase in a number of different assets and wouldn’t be surprised to see it continue for much of the summer.

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