Oil and Gold vulnerable after Monday declines

Oil pares losses, for now
Oil prices are recovering some losses after coming under heavy selling pressure on Monday at the prospect of renewed lockdowns.

Adding downward pressure to the oil price could be the addition of Libyan crude, with the country potentially adding around half a million barrels per day by year-end, although forecasts naturally vary.

An interesting battle could emerge in the coming weeks, with the Saudi Energy Minister Prince Abdulaziz bin Salman warning traders against shorting oil prices, but that seemingly fell on deaf ears as the market tumbled. Should it continue, OPEC+ may be forced to reconvene and increase cuts again in order to address the decline.