Meanwhile, investors are awaiting US inflation data this week.
The prices of the oil fell around 2% on fears that slower economic growth in United States and China can reduce energy demand, while the gold rose driven by the weakness of the dollar, as investors await US inflation data later this week.
The futures of the Brent, of reference in Uruguay, fell $1.88, or 2.3%, to close at $79.55 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.89, or 2.4%, to close at $75.53.
“Today’s price pullback, while significant, is still within the range of a normal and well-deserved correction following a substantial three-day advance of $6 per barrel,” analysts at the energy advisory firm said. Ritterbusch and Associates in a note.
Technical traders noted that prices for both contracts retreated after failing to break above resistance around the 200-day moving averages on Monday. With U.S. gasoline futures still trading near a six-month low, the 321 spread, which measures refining profit margins, remained near its lowest level since February 2021 for the second day in a row.
“If the refiner doesn’t make money on gasoline and distillate, then it will buy less crude oil to produce gasoline and distillate. The barrels it doesn’t buy will be sent to storage,” he said. Bob Yawger, Mizuho’s director of energy futures, said in a statement.
Gold rose thanks to the fall of the dollar
In parallel, the spot gold rose 0.3% to $2,524.94 an ounce, below the record high of $2,531.60 reached last week. Meanwhile, U.S. gold futures closed down 0.1% to $2,552.90.
While the dollar index fell 0.3%, making gold more attractive to holders of other currencies.
“The biggest thing right now is the fall in the US dollar that we’ve seen in the last hour, which has given a little boost to gold here, and we’re seeing a lot of buying on this dip,” he said. Bob Haberkorn, Senior Market Strategist at RJO Futures.
Source: Ambito
