Oil Gains Ahead of FOMC's Conclusion; Gold Nudges Up as Republicans Take House

Oil is on the rise in early morning trade before the conclusion of the two-day Federal Open Market Committee meeting. Many traders are also expecting crude inventories to have fallen in the latest week, ahead of the release of data by the U.S. Department of Energy at 1030 ET.

Gold is up slightly as the Republicans gained control of the House of Representatives after Tuesday's midterm elections, while the Democrats hold onto their majority in the Senate. While prospects of a possible political gridlock have already been factored in by market players, gold is expected to remain range-bound.

At 0755 ET, Brent crude is up 1.3% at $86.48 a barrel, while light sweet crude is up 1.0% at $84.70 a barrel, and natural gas is up 0.1% at $3.88 a million British thermal units.

Gold is up 0.1% at $1,358.40 an ounce, while silver is up 0.2% at $24.89 an ounce, and copper is 0.1% lower at $3.84 a pound.

Cimarex Energy Co ( XEC ) reported third quarter results that fell short of expectations due to lower natural gas liquids price realization, and the energy explorer narrowed its production outlook for the full year.

Approach Resources Inc ( AREX ), meanwhile, posted third quarter results that beat analysts' projections. The company also acquired an additional 10% interest in its Cinco Terry field in the Permian Basin for $21.5 million.

Seahawk Drilling Inc ( HAWK ) is up nearly 9% pre-market on Nasdaq as the drilling service provider to oil explorers considers its financial options including a sale, merger, or recapitalization, with Simmons & Co acting as the company's financial adviser.

In the mining sector, Centamin Egypt Ltd ( CEE ) reported producing 30,243 ounces of gold in the third quarter, adding that it is on track to meet its revised target for the year as production costs fall. The company had lowered its output guidance by 15% to 20% from a year ago to produce 160,000 to 160,000 ounces.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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