Crude oil nearfour month high; gold loses footing as dollar bumps higher
Crude oil prices were largely steady on Tuesday near fourmonth highs after breaking above rangebound trading last week, but the prospect of rising exports from Russia weighed amid Ukrainian attacks on refineries.
The Brent crude oil futures contract for May delivery was down 15 cents to $86.74 a barrel at 0946 GMT, while US West Texas Intermediate (WTI) prices were down 9 cents to $82.07. The WTI April contract, with expires on Wednesday, was down 9 cents to $82.63.
Both benchmarks hit highs last seen in November in the previous session, buoyed by lower crude exports from Saudi Arabia and Iraq, and signs of stronger demand and economic growth in China and the United States.
“Oil demand data surprising on the positive side and the extension of the voluntary OPEC+ cuts until the end of June have supported prices,” said UBS analyst Giovanni Staunovo. “Brent will likely trade in a $8090 per barrel range this year, with an endJune forecast of $86 per barrel.”
In Russia, exports are rising after Ukrainian drone attacks on the country’s oil infrastructure, pressuring prices.
FED IN FOCUS
Gold prices retreated hurt by a strengthening US dollar, while investors geared up for the Federal Reserve’s interest rate stance from Chair Jerome Powell’s speech at the conclusion of the central bank’s policy meeting on Wednesday.
Spot gold fell 0.4 per cent to $2,151.69 per ounce as of 10:15 a.m. EDT (1415 GMT), hovering near its lowest levels in a week hit on Monday. US gold futures eased 0.4 per cent to $2,154.60.
Although the Fed is widely expected to hold rates steady at the end of its twoday monetary policy meeting on Wednesday, the market is awaiting comments from Powell on updated interest rate projections due on the same day.
Spot silver fell 0.9 per cent to $24.78 per ounce, platinum lost 2 per cent to $894.90, palladium slipped 5 per cent to $983.72.