Commodities

Oil prices continue to rise; election uncertainty, economic cues in focus

Published

2 weeks ago

November 5, 2024

Investing.com — Oil prices edged higher Tuesday, continuing recent gains, with traders now seeking more cues from the U.S. presidential election and a top political meeting in China.

At 08:00 ET (13:00 GMT), climbed 0.5% to $75.45 a barrel, while rose 0.5% to $71.85 a barrel.

Oil shot up on Monday (NASDAQ:), posting gains of around 2%, after the Organization of Petroleum Exporting Countries and allies, a group known as OPEC+, delayed plans to increase production this year, presenting a tighter outlook for markets.

But despite recent gains, oil still remained close to near three-year lows hit earlier in the year, as markets remained on edge over slowing demand, especially in top importer China.

Heightened tensions in the Middle East also offered limited support to crude, as Iran reportedly prepared to launch a missile strike against Israel. Israel was also seen maintaining its offensive against Hamas and Hezbollah.

China NPC meeting in focus for more stimulus cues

The Standing Committee of China’s National People’s Congress – the country’s most powerful political body – kicked off a four-day meeting on Monday.

The NPC is expected to approve more fiscal spending by the government, especially after Beijing outlined a slew of fiscal measures aimed at supporting growth.

But China had not provided cues on the size or scale of the planned measures, given that only the NPC can approve increased fiscal spending. Recent reports said the country could approve about $1.4 trillion in increased debt over the coming years.

Any signs of concrete stimulus measures in China are likely to support oil markets, given that the country is the world’s biggest crude importer. Concerns over slowing demand in China have been a key weight on oil prices.

US elections, Fed meeting awaited

Markets were also awaiting more cues from the U.S. as the country heads into a tightly contested presidential election on Tuesday. Recent polls showed Donald Trump and Kamala Harris largely neck-and-neck, with a clear outcome appearing uncertain.

After the elections, focus this week is also on a , where the central bank is widely expected to cut interest rates by 25 basis points.

The elections and the Fed meeting are set to offer more cues on the world’s biggest fuel consumer, especially with demand set to cool heading into the winter season.

Oil hedging activity hits record

These massive macro events have resulted in investors ramping up oil futures and options trading in October to record levels in a bid to hedge growing uncertainty.

Hedging can help producers reduce risk and protect their production from sharp moves in the market by locking in a price for the oil. It can also give traders opportunities to profit in times of volatility.

Some 68.44 million barrels of oil in futures and options were traded in October, according to data from the Intercontinental Exchange (NYSE:), surpassing the monthly record hit in March 2020 when futures plummeted roughly $30 per barrel as the COVID-19 pandemic crushed global oil demand.

CME Group (NASDAQ:), meanwhile, reported a single day volume record for weekly options on Oct. 18, with 58,132 contracts traded.

(Ambar Warrick contributed to this article.)

Commodities

Gold prices rise, set for strong weekly gains on Russia-Ukraine jitters

Published

5 hours ago

November 22, 2024

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Commodities

Oil heads for weekly gains as Ukraine war intensifies

Published

5 hours ago

November 22, 2024

By Robert Harvey and Enes Tunagur

(Reuters) – Oil prices held steady on Friday, on track for a weekly rise of 5%, as the Ukraine war intensified and Chinese imports were set to increase in November.

futures climbed 33 cents, or 0.44%, to $74.56 a barrel by 1008 GMT. U.S. West Texas Intermediate crude futures rose 27 cents, or 0.39%, to $70.37 per barrel.

Both contracts are set for gains of 5% this week, the strongest weekly rise since late September, as Moscow steps up its Ukraine offensive after Britain and the United States allowed Kyiv to strike Russia with their weapons.

Putin said on Thursday Russia had fired a ballistic missile at Ukraine and warned of a global conflict, raising the risk of oil supply disruption by one of the world’s largest producers.

Ukraine has used drones to target Russian oil infrastructure, for instance in June, when it used long-range attack drones to strike four Russian refineries.

“What the market fears is accidental destruction in any part of oil, gas and refining that not only causes long-term damage but accelerates a war spiral,” said PVM analyst John Evans.

The world’s top crude importer, China, announced policy measures on Thursday to boost trade, including support for energy product imports, amid worries over U.S. President-elect Donald Trump’s threats to impose tariffs.

China’s imports are set to rebound in November after sharp price cuts boosted demand for Iraqi and Saudi oil, offsetting a drop in Iranian supply, according to analysts, traders and ship tracking data.

Oil prices briefly dipped after data showed euro zone business activity took a surprisingly sharp turn for the worse this month as the bloc’s dominant services industry contracted and manufacturing sank deeper into recession.

Goldman Sachs said in a note that it expects Brent to stay in a $70 to $85 range, but added that prices could reach the top end of that if Iranian output is impacted by Trump’s possible tightening of sanctions.

Commodities

Oil prices rise as Russia-Ukraine tensions offset US inventory build

Published

1 day ago

November 21, 2024

Investing.com– Oil prices rose in Asian trade on Thursday, buoyed by fears of supply disruptions stemming from worsening tensions in the Russia-Ukraine war, although a build in U.S. inventories limited overall gains.

Prices advanced this week as the use of long-range U.S. weapons by Ukraine against Russia ramped up tensions between the two countries, sparking concerns that oil supplies from Moscow could be disrupted.

Oil also benefited from some bargain buying after dropping to more than one-month lows last week. Still, overall gains were limited by concerns over slowing demand, especially as U.S. inventories grew more than expected.

expiring in January rose 0.4% to $73.07 a barrel, while rose 0.4% to $68.79 a barrel by 22:04 ET (03:04 GMT).

Russia-Ukraine tensions underpin oil

Rising tensions between Russia and Ukraine were a key point of support for oil markets, especially after the U.S. authorized Kyiv to use long-range missiles against Russia.

Moscow responded to this by lowering its threshold for nuclear retaliation, and warned of a dire escalation in the war.

Ukraine on Wednesday fired a fresh volley of Western-made missiles into Russia, potentially drawing more severe retaliation from Moscow. A key point of anxiety for oil markets is Ukraine’s continued targeting of Russia’s energy infrastructure, which could potentially disrupt oil supplies.

US inventories grow more than expected, gasoline stockpiles rise

Data from the U.S. Energy Information Administration showed on Wednesday that U.S. grew 0.5 million barrels in the week to November 15, more than expectations for a build of 0.4 mb.

The build, while minimal, was a third straight week of builds.

More worrying for oil markets was a nearly 2.1 mb build in , which spurred some concerns that U.S. fuel demand was cooling as the winter season approached.

Oil prices remained skittish on the prospect of increased supply and softening demand in the coming year, which some analysts expect to cause a supply glut.

Reuters reported that the Organization of Petroleum Exporting Countries and allies (OPEC+) was planning to further postpone increases in oil production when it meets on December 1.