Crude oil prices are trading around multiyear highs.
The XAUUSD pair however rebound from Tuesday's loss during Asian market hours and is now trading around $1294/95 price range.
Dudley said he saw oil prices falling to between $50 and $65 because of surging shale output and OPEC's capacity to boost production to cover a potential shortfall in Iranian supplies owing to USA sanctions.
OPEC should be grateful to Venezuela: thanks to this inexorable slide in Venezuelan oil production, the cartel exceeded its overall production quota under the cuts deal, in some months by a wide margin, pushing prices to four-year highs.
The U.S. government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro.
At the moment the barrel of WTI is losing 2.73% at $68.62 facing the next down barrier at $67.65 (low May 8) seconded by $66.94 (55-day sma) and finally $66.86 (low May 1). As a result of all this, we got Brent at US$80, which is what some OPEC members wanted. Positive outlook from Fed minutes would result in Gold price going down further as demand for greenback keeps increasing over prospect of multiple rate hikes this year while a dovish outlook would help Yellow metal reclaim $1300 price range. Could it be that these upbeat predictions were a little bit off the mark?
Higher US supplies, news on increasing OPEC output weigh on oil. A day after the results were declared, the United States imposed fresh sanctions, which Venezuela has called "illegal". Total motor gasoline supplied (the agency's proxy for demand) averaged over 9.5 million barrels a day for the past four weeks, up about 1% compared with the same period a year ago.
Supply concerns in Iran and Venezuela following new U.S. sanctions had pushed both Brent and WTI to multi-year highs, with Brent breaking through a $80 threshold last week for the first time since November 2014.
Global inventories have been broadly falling, even as USA crude production has risen.
"With the hike in crude oil prices countries that would gain the maximum will be 'United States, Canada, Mexico, Russia, Brazil, and Mideast oil-exporting nations" while those at the losing end would be countries like India China and other developing nations without oil reserves, analysts told Sputnik. The message could not be clearer: Brent at US$80 is already a problem for the world's third-largest consumer. I think the question is, do I need a lot of oil on the market?