- The inventory of crude oil falls by 12.46 million barrels compared to an expected build of 932K as per EIA Report.
- Gold is struggling due to the possibility that the Fed might tighten its policies due to sticky inflation.
- The global crypto market cap has fallen to $1.1 trillion.
is turning bullish as demand shows signs of improvement and energy traders are heeding the Saudi warning to short-sellers. The EIA crude oil inventory shows that demand improved for crude, distillates, and gasoline.
As debt ceiling talks revolve around spending, crude oil has been dragged down. However, drivers on the supply and demand side are slowly turning bullish. If it weren’t for the stressful period that we wait for the 11th hour for a debt limit deal to get done, WTI crude would be much higher. With the X-date expected at the end of the first week of June, oil could struggle to make a meaningful rebound here.
is weakening as the dollar rises because of the absence of any debt ceiling progress, and due to the possibility of more Fed tightening. Today’s price action has been dominated by surging short-dated Treasury yields. Gold has key support at the $1975 region, but if it breaks, the situation could become ugly. Gold should still be a safe-haven trade, but it will struggle if sticky inflation forces the Fed to deliver more tightening.
is under pressure because of the rising risk of a US default, and the Fed might deliver more tightening. Bitcoin is very sensitive to surging Treasury yields, as too many crypto/blockchain companies will struggle with financing. Finding a bank that will deal in cryptos is challenging, let alone taking out loans for long-term projects. Bitcoin remains rangebound and should continue to consolidate near the lower boundaries of its downward sloping trading range, with the $25,000 level providing massive support.