home Latest News Safe haven commodities’ gold and silver lag, oil outperforms – Daily Market Report – IG

Safe haven commodities’ gold and silver lag, oil outperforms – Daily Market Report – IG

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OIL – US CRUDE: A fourth consecutive day of gains, the latest buoyed by an ease in trade tensions

Trade tensions dropped for a change, and that has certainly aided commodities in rising off recent lows, including this energy commodity. API’s 2.2M deficit of US oil inventories yesterday certainly didn’t hurt its price, as the strain on the supply side has failed to subside even as global demand weakens. EIA’s estimate is set to be released later today expected to show a similar 2.5M deficit. From a technical standpoint, a positive DMI cross occurred yesterday, and its price closed back above both its 200-day and 50-day moving averages but failing to undo a slight bear trend channel forming if prices can’t rise further from these levels. In terms of sentiment, retail bias has dropped 8% on long profit-taking to a slight long 54% and is on the verge of shifting back to a majority short bias if another significant price increase occurs, while institutional bias remains at extreme long territories at 77% despite an increase in shorts by 12.3K lots.