. Daily Commodity Analysis - Dollar Drop Sparks Oil Surge, OPEC+ Tensions Rise.

Daily Commodity Analysis – Dollar Drop Sparks Oil Surge, OPEC+ Tensions Rise.

Daily Commodity Analysis – Dollar Drop Sparks Oil Surge, OPEC+ Tensions Rise.

28 Nov 2023

Introduction:

In the latest developments in the commodity market, Crude oil prices rise on a weakening dollar and expectations of OPEC+ output cuts. Tuesday’s gains were prompted by the anticipation of prolonged production cuts within the OPEC+ alliance due to ongoing concerns about subdued demand. Copper sees a slight decline amid focus on China PMIs, while gold maintains a six-month high in Asian trading, fuelled by speculation of the Federal Reserve holding interest rates steady. Additionally, silver prices reach a new three-month high around $24.80.

Brent Crude Oil:

Crude oil prices increase due to a declining dollar, expectations for OPEC+ output cuts.

On Tuesday, crude oil prices experienced a modest increase driven by a weakened dollar and the anticipation that the OPEC+ producer alliance would intensify and prolong output cuts amid concerns over persistently subdued demand.

Both benchmarks pared some gains after experiencing a notable increase during the early Asian trading session.

OPEC+, a coalition comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, is scheduled to conduct a virtual ministerial meeting on November 30 to deliberate on production targets for 2024.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 80.06| Positive Crossover | Bullish
  • MA 20: 80.60| Negative Crossover | Bearish
  • MA 50: 81.78| Negative Crossover | Bearish

Simple:

  • MA 5: 79.88| Positive Crossover | Bullish
  • MA 20: 80.95| Negative Crossover | Bearish
  • MA 50: 81.19| Negative Crossover | Bearish

RSI (Relative Strength Index): 45.07| Buying Zone | Bullish

Stochastic Oscillator: 28.51| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 81.15 | R2: 84.82
  • S1: 79.64| S2: 76.40

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell 78.49 | Take Profit: 76.40 | Stop Loss: 79.78.

Copper:

Copper experiences a slight decline as attention turns to China PMIs.

In the realm of industrial metals, copper prices showed a slight retreat on Tuesday, following two weeks of robust advances. March-expiry copper futures dipped by 0.1% to $3.7968 per pound.

Traders of copper are currently eagerly anticipating the release of the Purchasing Managers Index (PMI) data from China scheduled for this Thursday.

Forecasts suggest that the reading will indicate a persistently sluggish business activity in China for November, following a string of weak performances in October.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 3.753 | Negative Crossover | Bearish
  • MA 20: 3.756 | Negative Crossover | Bearish
  • MA 50: 3.724| Positive Crossover | Bullish

Simple:

  • MA 5: 3.575 | Negative Crossover | Bearish
  • MA 20: 3.773| Negative Crossover | Bearish
  • MA 50: 3.711| Positive Crossover | Bullish

RSI (Relative Strength Index): 48.08 | Buy Zone | Bullish

Stochastic Oscillator: 0| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 3.797 | R2: 3.863
  • S1: 3.739| S2: 3.633

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion:  Stop Sell: 3.704 | Take Profit: 3.633 | Stop Loss: 3.753.

Elsewhere In the Commodity Market.

In Tuesday’s Asian trading, gold prices experienced a marginal increase, maintaining a six-month high amid increasing speculation that the Federal Reserve will refrain from further interest rate hikes. Silver prices ascend to a fresh three-month peak, reaching approximately the $24.80 region.

Gold down (0.06%) at 2012.39, Silver down (0.29%) at 24.55, Palladium up (0.29%) at 1070.56, Platinum up (1.49%) at 927.60, Brent Crude Oil up (0.13%) at 79.97, WTI Crude Oil up (0.13%) at 74.97 as of writing time.

Key Economic Events & Data Release Today:

(AUD) Retail Sales (MoM) (Oct) Actual –0.2%, Forecast 0.1%, Previous 0.9% at 06:00.

(USD) CB Consumer Confidence (Nov) Forecast 101.0, Previous 102.6 at 20:30.

(EUR) ECB President Lagarde Speaks at 21:30.

(GBP) MPC Member Haskel Speaks at 22:30.