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Oil prices ticked higher on Thursday on fears of a wider conflict in the Middle East, after Israel said it plans an assault on Hamas hold-outs in Rafah, with gold also gaining against a softer U.S. dollar (DXY).
Brent crude (CO1:COM) futures rose +0.15% to $88.03 a barrel at 6 am ET, while U.S. West Texas Intermediate crude (CL1:COM) futures added +0.15% to $82.82.
Fighting in the Gaza Strip between Israel and Hamas is expected to expand as Israel may start an assault on Rafah, in the enclave’s south, which may increase the risk of a wider war that could potentially disrupt oil supplies.
Meanwhile, concerns about U.S. fuel demand rose amid signs of cooling U.S. business activity, with some traders expecting the Federal Reserve to delay expected interest rate cuts, against the backdrop of stronger-than-expected inflation and employment data. U.S. economic data out later on Thursday includes first-quarter economic growth.
On the company side, Valero (VLO) will kick off first-quarter earnings season for the biggest independent refiners before U.S. equity markets open on Thursday. Phillips 66 (PSX) reports on Friday, along with oil majors Exxon (XOM) and Chevron (CVX).
Natural gas futures (NG1:COM) extended their decline after a nearly 9% fall in the previous session.
Turning to metals, precious metals were trading higher, with spot gold trading +0.4% higher at $2,325.12 an ounce, as focus turned to U.S. economic data that could offer clues to the Federal Reserve’s interest rate path.
“Commodities will be watching today’s U.S. GDP and could weaken should the print further weaken the conviction on Fed rate cuts,” Saxo Bank’s Ole Hansen siad.
Copper (HG1:COM) trades near cycle high as the potential of a mega-deal between BHP and Anglo-American highlights the importance and expectations for copper given its key role in the green transition and increased demand via AI roll outs, Hansen added.
The proposal comprises an all-share offer for Anglo American by BHP and would be preceded by separate demergers by Anglo American of its entire shareholdings in Anglo American Platinum Ltd and Kumba Iron Ore to Anglo American shareholders, Anglo said in the statement.
Recent Commodity Price Movements and A look At Some ETFs
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Energy
Metals
Agriculture
Commodity ETFs
Gold ETFs:
Other Metal ETFs:
Oil ETFs:
Agriculture ETFs:
