MTECHTIPS;-Oil prices fall after rally encourages profit-taking


MTECHTIPS;-Oil prices fall after rally encourages profit-taking

MTECHTIPS-Oil prices fell on Monday as a rally at the end of last week prompted investors to close positions at a higher price, against a backdrop of signs the global market is starting to re balance. Benchmark Brent crude futures (LCOc1) were down 29 cents at $52.43 a barrel at 0856 GMT, after surging more than 3 percent in the previous session. U.S. West Texas Intermediate crude futures (CLc1) traded at $48.39 a barrel, down 12 cents. The contract had also risen 3 percent in the previous session. “We are currently seeing some profit-taking after Friday’s strong rally ahead of this week’s inventory data,” said Hans van Cleef, senior energy economist at ABN Amro. “Fresh uncertainty about inventories and OPEC compliance (with agreed production cuts) could be enough reason to sell some of the long positions.” U.S. hedge funds and money managers have already started lowering their bets on rising prices. Commodity Futures Trading Commission data showed on Friday that investors had cut bullish bets on U.S. crude for a second straight week. The world remains awash with oil despite a deal struck by some of the world’s biggest producers to rein in output. Rising U.S. production has been a major factor keeping supply and demand from balancing.

MTECHTIPS;-Oil prices fall after rally encourages profit-taking


MTECHTIPS;-Oil prices fall after rally encourages profit-taking

MTECHTIPS-Oil prices fell on Monday as a rally at the end of last week prompted investors to close positions at a higher price, against a backdrop of signs the global market is starting to re balance. Benchmark Brent crude futures (LCOc1) were down 29 cents at $52.43 a barrel at 0856 GMT, after surging more than 3 percent in the previous session. U.S. West Texas Intermediate crude futures (CLc1) traded at $48.39 a barrel, down 12 cents. The contract had also risen 3 percent in the previous session. “We are currently seeing some profit-taking after Friday’s strong rally ahead of this week’s inventory data,” said Hans van Cleef, senior energy economist at ABN Amro. “Fresh uncertainty about inventories and OPEC compliance (with agreed production cuts) could be enough reason to sell some of the long positions.” U.S. hedge funds and money managers have already started lowering their bets on rising prices. Commodity Futures Trading Commission data showed on Friday that investors had cut bullish bets on U.S. crude for a second straight week. The world remains awash with oil despite a deal struck by some of the world’s biggest producers to rein in output. Rising U.S. production has been a major factor keeping supply and demand from balancing.

MTECHTIPS;-Gold treads water at start of busy week


MTECHTIPS;-Gold treads water at start of busy week

MTECHTIPS-Gold prices were little changed on Monday, as market players looked ahead to this week’s annual meeting of top central bankers and economists in Jackson Hole, Wyoming, where the heads of the U.S. and European central banks will be making keynote speeches.Their comments will be closely watched for fresh policy signals from the world’s two most powerful central banks. Traders will also keep an eye out on U.S. housing and durable goods data to gauge the strength of the world’s largest economy and how it will impact the Federal Reserve’s view on monetary policy. Markets remain skeptical the Fed will raise rates a third time this year due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet by September. Investors are likely to continue to fret over the latest headlines coming out of Washington after political developments shook the market last week. The deepening turmoil surrounding President Donald Trump’s administration intensified doubts that he would be able to follow through on his campaign promises for tax cuts, deregulation and fiscal stimulus.

MTECHTIPS;-Gold treads water at start of busy week


MTECHTIPS;-Gold treads water at start of busy week

MTECHTIPS-Gold prices were little changed on Monday, as market players looked ahead to this week’s annual meeting of top central bankers and economists in Jackson Hole, Wyoming, where the heads of the U.S. and European central banks will be making keynote speeches.Their comments will be closely watched for fresh policy signals from the world’s two most powerful central banks. Traders will also keep an eye out on U.S. housing and durable goods data to gauge the strength of the world’s largest economy and how it will impact the Federal Reserve’s view on monetary policy. Markets remain skeptical the Fed will raise rates a third time this year due to worries over the subdued inflation outlook, but it is widely expected to start the process of reducing its balance sheet by September. Investors are likely to continue to fret over the latest headlines coming out of Washington after political developments shook the market last week. The deepening turmoil surrounding President Donald Trump’s administration intensified doubts that he would be able to follow through on his campaign promises for tax cuts, deregulation and fiscal stimulus.