Gold, Silver, Copper and Crude Oil Briefing

Share

Geopolitical concerns elevated crude prices on Tuesday after President Donald Trump canceled his scheduled trip to multiple South American countries to focus on the US response to developments in Syria.

Before the rebound late on Wednesday, after the release of the Energy Information Administration (EIA) inventory data, WTI and Brent had hit two-week lows after China proposed a broad range of tariffs on USA exports, feeding fears of a trade war.

US West Texas Intermediate (WTI) crude futures for the May contract edged higher by 1.2 percent to $64.22 per barrel, while global benchmark Brent futures for June delivery climbed by 1.2 percent to $69.53 per barrel.

On Tuesday, Brent crude rose 3.5 percent, while WTI gained 3.4 percent overall.

In physical oil markets, Opec's number two producer Iraq said on Monday that it was keeping prices for its crude supplies in May steady.

Oil markets stabilised on Monday after slumping about 2% last Friday on the concern over an intensifying trade dispute between the U.S. and China, as well as increased U.S. drilling activity.

The remarks helped soothe investor jitters over the ongoing tit-for-tat tariff dispute between the USA and China, which investors had feared might escalate into a full-blown trade war between the world's two largest economies.

Brazil's Lula creates standoff with defiance of prison order
Even with his legal troubles he leads setting surveys to reunite to place of work - if by a chance he is permitted to perform. Earlier Thursday, the head of the Workers' Party insisted that da Silva, 72, would be the party's candidate in October.

U.S. WTI crude futures CLc1 were at $65.40 a barrel, down 11 cents, or 0.2 percent from their last settlement.

Thanks to strong demand and relatively subdued supply, recent inventory data has mostly crude oil prices.

"There are headlines of a USA carrier group heading to the Middle East, the Saudis are looking for $80 Brent crude, and this is ahead of API inventories", said Roberto Friedlander, head of energy trading at Seaport Global Securities.

Departures from the accord would result in renewed sanctions against Iran, which would hurt its oil industry. U.S. President Donald Trump promised a "major response" within 24 to 48 hours to an alleged chemical attack in Syria, which he said could be the work of the Syrian government, Iran, Russia or all three. The US Energy Information Administrations still expects production to total 10.7 million barrels a day this year - a record.

The United States late previous year overtook top exporter Saudi Arabia as the world's second biggest crude producer. Only Russia pumps more crude, at nearly 11 million bpd.

The Saudis want oil prices near $80, in part to support the valuation of state-owned energy giant Aramco ahead of its initial public offering, Bloomberg News reported Tuesday (https://www.bloomberg.com/news/articles/2018-04-10/saudi-arabia-is-said-to-signal-ambition-for-80-oil-price?utm_medium=social&utm_campaign=socialflow-organic&utm_content=markets&cmpid%3D=socialflow-twitter-markets&utm_source=twitter), citing people who have spoken to delegates from the Organization of the Petroleum Exporting Countries and oil market participants.

Share