Commodities Daily - November 20, 2018

> Oil prices rebound after a sharp correction amid stock market losses, weaker dollar. The current bearish run in oil prices, combined with the uncertainty about the US-China trade war and situation with the murdered Saudi journalist - not to mention several abrupt policy shifts - have undermined sentiment to such an extent that investors are unwilling to price in the likely production cut to be delivered at the December 6 OPEC meeting, considering it too early to take such a risk. Thus, we think that Brent is likely to continue trading within the current $65-68/bbl range before the OPEC meeting and within a $66-67/bbl corridor today.> Gold prices tick higher, capitalizing on weaker dollar. Most currencies are stable this morning, and investors are awaiting today's release of US housing starts data for October. A disappointing number could add more pressure to the greenback. Our FX team envisages the dollar staying flat today, although there is risk of further downside if the US data turns out to be weak, so we expect gold to consolidate around the $1,225/oz mark.