Commodities Week Ahead: Oil Traders More Worried About Fed, US Jobs Than Wars
Israel is pounding Gaza non-stop and from all fronts to get to Hamas. But, oil traders seem more concerned right now about what the Federal Reserve might do or say at the central bank’s rate decision on Wednesday and how the US job numbers for October will turn out on Friday, than the Middle East’s raging war that practically had markets on tenterhooks last week.
This is also despite gold pushing for new 2023 highs above $2,000 an ounce as those long the yellow metal fully embraced its safe-haven appeal.
Oil prices fell as the week opened in Asia, reversing a bulk of gains made in the prior session, as anticipation of the Fed meeting and key economic readings this week spurred some profit-taking.
New York-traded West Texas Intermediate, or WTI, crude for delivery in December was at $84.37 a barrel by 14:45 in Singapore (02:45 New York), down $1.17, or 1.4%. The session low was $83.77.
For all of last week, the US crude benchmark fell 3% in one of the most volatile weeks since the year began as traders struggled to ascertain a war premium for oil.
“WTI’s charts show the door is open for a retest of its first support zone of $83.50, followed by $82.50,” said Sunil Kumar Dixit, chief technical strategist at SKCharting.com.
“Weakness below $82.50 can bring $81, while major support is seen at $79.50. Of course, this is barring the impact of the war."
London-traded Brent crude for the most-active December contract was at $88.22, down 98 cents, or 1.1%. The session low for December crude was $88.02. Last week, the global crude benchmark slid nearly 2%.
It would be remiss to say traders aren’t on the lookout for headlines on the war in the Middle East, after Israel launched at the weekend its much-anticipated ground assault on
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