Oil rose further above $68 a barrel on Tuesday, touching its highest since May 2015, supported by OPEC-led production cuts and expectations U.S. crude inventories fell for an eighth week
Oil hits highest since May 2015 above $68 on tighter market – Oil rose further above $68 a barrel on Tuesday, touching its highest since May 2015, supported by OPEC-led production cuts and expectations U.S. crude inventories fell for an eighth week. The Organization of the Petroleum Exporting Countries and allies including Russia are keeping supply limits in place in 2018, a second year of restraint, to reduce a price-denting glut of oil held in inventories. “In view of sharply falling U.S. crude oil stocks and record-high compliance with the production cuts by OPEC, market participants are convinced that the market is continuing to tighten.” OPEC is cutting output by even more than it promised [OPEC/O] and the restraint is reducing oil stocks globally, a trend most visible in the United States, the world’s largest and most transparent oil market.
Gold Prices Retreat Further From 3-1/2 Month Highs – Gold prices fell on Tuesday, retreating further from last week’s three-and-a-half month highs as the dollar strengthened against the euro and as investors continued to bet on further rate hikes by the Federal Reserve this year. The euro fell to more than one-week lows against the dollar as investors took profits after its recent rally amid concerns that the European Central Bank may attempt to talk down the strengthening currency ahead of its monetary policy meeting later this month. After getting off to a strong start to the year the single currency had hit a four-month high on Thursday, putting it within striking distance of a September peak of 1.2092, its strongest level since early 2015. Demand for the dollar was also underpinned by expectations for further interest rates hikes by the Fed this year after Friday’s U.S. jobs report did little to alter the outlook for monetary tightening. While the rate of jobs growth cooled in December a pick-up in wage growth pointed to strength in the labor market.
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