Not much upside news left I'm afraid except Macro supply side disruptions.
The core price consumer expenditure (PCE) index – the Fed’s preferred measure of inflation – rose 1.4% in October year-on-year, compared to a 1.3% rise in the previous month, while September inflation was revised upward to 1.4% from 1.3%.
The upbeat inflation report, fuelled expectations that the Federal Reserve would adopt a more aggressive stance on monetary policy, lifting yields and the dollar to session highs, which pressured gold prices to a nearly two-week low.
“We now see four rate hikes next year instead of three, followed by three hikes in 2019 instead of four,” said Deutsche Bank.
Goldman Sachs (NYSE:GS) Commodity Research said that it expects the duration of the OPEC extension would help to reduce the risk of a sharp increase in production but noted that the cuts would not target high prices amid fears over a ramp up in US shale output.
"We take away from these [OPEC] comments a strong commitment to normalizing inventories and also to remain data dependent, which reduces the risk of both unexpected supply surprises and excess stock draws," Goldman said.
In the U.S., investors mulled over a report from Baker Hughes showing the number of oil rigs operating in the US rose by 2 to 749, further adding to fears that increased output from US producers would dampen OPEC efforts to rein in excess supplies.
The uptick in rig counts come as data this week showed U.S. domestic output rose 15% to 9.66 million barrels per day (bpd).
OPEC cuts are estimated at 1.8 million per day probably less because they always are. Another 10% in US output would add nearly 1m bpd..if Venezuela gets their chit together (And They don't have a choice) gonna be tough for oil. All JMO
