Crude oil prices continued to hover near mutli-week highs on Tuesday, as optimism dominated amid news Saudi Arabia plans to continue cutting output levels.
Gold Prices Mildly Supported Ahead of Powell Testimony – Gold prices remained mildly supported on Tuesday, as sentiment on the greenback was vulnerable ahead of Federal Reserve Chairman Jerome Powell’s first congressional testimony scheduled later in the week. Traders became more cautious as Powell w as set to testify on the central bank’s semi-annual report on monetary policy and the economy on Tuesday before the U.S. House of Representatives’ Financial Services Committee. Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency. The greenback had strengthened broadly after the minutes of the Fed’s January policy meeting showed last week that central bank officials see increased economic growth and rising inflation as justification to continue to raise interest rates gradually.
Crude Oil Prices Remain Supported as Optimism Dominates – Crude oil prices continued to hover near mutli-week highs on Tuesday, as optimism dominated amid news Saudi Arabia plans to continue cutting output levels. Oil prices strengthened after Saudi oil minister Khalid al-Falih said over the weekend that the country’s oil production in January-March would be well below output caps, with exports averaging below 7 million barrels per day (bpd). Falih added that he hopes global oil producers will be able to create a permanent framework to stabilize oil markets after the current supply cut deal ends this year. The Organization of the Petroleum Exporting Countries (OPEC), along with some non-OPEC members led by Russia, agreed in December to extend oil output cuts until the end of 2018. The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once. Market participants were now looking ahead to fresh information on U.S. stockpiles. The American Petroleum Institute was set to publish its weekly report later Tuesday, while official data by the U.S. Energy Information Administration was expected on Wednesday.
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