Oil consolidates after three day rally

FXStreet (Mumbai) - Oil prices at both the sides of the Atlantic consolidated in the early European session after rallying for three day rally.

Rally halts on recovery in USD

Oil price rally halted on the back of a slight recovery in the USD index on an increasing threat of Grexit. The USD index had clocked a one month low on Thursday, lending support to crude prices. A weaker dollar makes commodities priced in the greenback, such as oil, more affordable in non-USD terms.

Prices were also supported by data released on Wednesday that showed a draw in crude this week at Cushing, Oklahoma, the delivery point for US crude futures. However, the US Energy Information Administration (EIA) also cited the first weekly build in Cushing inventories since mid-April.

Brent futures currently trade at USD 64.19/barrel, while WTI futures trade at USD 60.63/barrel each largely unchanged for the day.

Gold likely to drop to $1194.17 – FXStreet

FXStreet Editor and Analyst, Dhwani Mehta, offers the technical outlook and key levels for XAU/USD, noting that a break below 1199.42 targets the 50-DMA located at 1194.17.
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