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Oil shrugs off huge build, gold awaits CPI statistics

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Oil

Energy traders should be able to accept higher oil prices. ​ Oil demand is coming back and expectations are high that China’s demand is about to skyrocket. WTI crude rejected an EIA crude crude oil report, which revealed a shockingly large build. ​Although refinery shut downs are well-known, the 18.96million build was far greater than expected. While some West Coast hurricanes have limited gasoline demand, distillate demand is up. ​ ​ ​ ​

Crude exports are slumping, posting the largest decline since May 2021, ​ but some of that could be attributed to year-end buying. While production edged higher, US output is expected to remain at the same levels.

Two-hour groundings will provide a slight boost in jet fuel demand but travel trends are expected continue to improve. ​WTI is moving higher, and it may not take long to get WTI back up above $80 per barrel.

Gold

The December inflation report is not expected to have an impact on gold prices. ​Fed rate rise expectations lean towards a 25bp rate hike at the February 1.st FOMC meeting, March 22nd Gathering appears to be a tossup among another small…



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