(https://steemitimages.com/Crude oil prices dipped to a three-week low as the IEA cut its forecast for demand this year and next. Losses would prove short-lived however, with the WTI contract erasing the day’s losses to finish the session with a minor gain. The bounce appears corrective after the benchmark suffered a steep drop in the prior session.
A further boost came from US President Donald Trump. He floated the possibility of resorting to a “military option” in dealing with the political crisis in Venezuela, a major oil producer. The influence of this headline was relatively modest compared with the gains that preceded it however.
Looking ahead, the EIA Drilling Productivity Report is on tap. Traders will comb through the document to inform speculation about the extent to which swelling US production will offset OPEC-led output cuts. By way of context, Baker Hughes said the number of US rigs in operation hit a two-year high last week.
Gold prices edged up as US CPI figures fell short of expectations even as they posted the first inflation pickup in five months. That weighed on Treasury bond yields and the US Dollar alike, making for a relatively supportive environment for anti-fiat and non-interest-bearing assets.
July’s US Retail Sales report is now in focus. Receipts are seen rising 0.4 percent from the prior month, the most since January. An upbeat result echoing the cautious improvement in US data flow since mid-June may boost bets on another Fed rate in 2017, sending the yellow metal lower.