Oil Prices Maintain Uptrend Amid Ongoing Middle East Supply Worries
Global Commodity Markets Experience Mixed Open
Commodity markets opened on a mixed note on April 30, as investors assessed evolving global macroeconomic cues, currency movements, and shifting demand trends across major economies.
Oil Prices Extend Gains Amid Supply Concerns Oil prices extended gains on Thursday on concerns that supply from the key Middle East producing region will remain bottled up for longer as talks to end the U.S.-Israeli war against Iran have deadlocked. Brent crude futures for June rose $1.91, or 1.62%, to $119.94 a barrel after gaining 6.1% in the previous session. The June contract, which has increased for a ninth day, expires on Thursday, and the more active July contract was at $111.38, up 94 cents, or 0.85%, after gaining 5.8% in the previous session.
| Contract | Previous Session Gain | Current Session Gain |
|---|---|---|
| June Brent Crude | 6.1% | 1.62% ($1.91) |
| July Brent Crude | 5.8% | 0.85% ($0.94) |
| June WTI Crude | 7% | 0.59% ($0.63) |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
U.S. West Texas Intermediate futures for June were up 63 cents, or 0.59%, at $107.51 a barrel, after climbing 7% in the previous session, climbing in eight of nine sessions.
Gold Prices Rebound from One-Month Low Gold prices rebounded on Thursday from a one-month low hit the day before, helped by a softer U.S. dollar, although elevated oil prices kept fears alive of inflation and higher-for-longer interest rates. Spot gold was up 0.6% at $4,566.73 per ounce, after falling to its lowest level since March 31 in the previous session. US gold futures for June delivery rose 0.4% to $4,578.50.
| Commodity | Previous Session Change | Current Session Change |
|---|---|---|
| Spot Gold | - | 0.6% ($27.73) |
| US Gold Futures (June) | - | 0.4% ($18.50) |
| Silver | - | 0.5% ($0.36) |
Silver rose 0.5% to $71.64 an ounce. Platinum and palladium also advanced. The dollar hovered near its highest in more than two weeks on Friday after some Federal Reserve policymakers turned hawkish, sending yields to a one-month top, while the Japanese yen's break above 160 sharpened focus on intervention risks.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Oil prices may continue to be volatile due to ongoing supply concerns in the Middle East.
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