Oil edges higher ahead of OPEC+ meeting this weekend

Oil prices are edging higher into the end of the week, perhaps a sign of nerves appearing before the OPEC+ meeting this weekend. While there seems to be a widely held view that the group won’t announce any further cuts, it’s worth noting that the same was true at the last meeting and then the group announced cuts of roughly another million barrels.

And while there have been comments to suggest the alliance isn’t likely to cut output this weekend, it’s hard to ignore the warnings from the Saudi energy minister to “watch out”, threatening more “ouching” for short speculators. This may be playing into the mind of traders fearing another surge on the open next week.

Will the jobs report push gold back above $2,000?

Gold has had a few good days this week, buoyed by an easing of yields which may be related to the debt ceiling deal but I expect it probably has more to do with the Fed commentary on the merits of pausing in June, alongside much better eurozone inflation data.

Whether that will be enough to see it break back above the $2,000 psychological barrier will probably depend on how much of a helping hand it gets from the jobs data shortly. A weak report could push yields lower and give gold another boost while another hot set of numbers could bring an abrupt end to this recovery rally.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.

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