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Crude Gives Back Bulk Of US/UK Military Strike Gains, Gold Surges

COMMODITIES
  • Crude futures have for the third day now sharply given back earlier gains, with some of that late weakness seen along with an intraday recovery in the USD index. Despite WTI still rising 1% on the day it’s set for down circa -1.5% on the week.
  • Today’s earlier gains followed concerns that US/UK military strikes on Yemen’s Houthis will worsen Middle East tensions.
  • All US and UK interest are now legitimate targets for the Houthi rebels according to a statement by the group Friday following earlier air strikes against them in Yemen, whilst the US Naval Forces Central Command issued a note calling for US-flagged vessels to restrict transit in the Red Sea following the US strikes against the Houthis in Yemen. At least three tanker firms have said they are going to suspend sending their ships via the southern Red Sea due to Houthi rebel attack escalations following US/UK air strikes on rebel positions in Yemen Friday.
  • Citigroup have lowered the Brent price outlook for 2024 by $1/bbl to $74/bbl while the 2025 forecast has been cut by $10 to $60/bbl.
  • WTI is +0.9% at $72.68 off a high of $75.25 but one which didn’t touch resistance at $76.18 (Dec 26 high).
  • Brent is +1.1% at $78.29 after its high of $80.75 cleared $79.41 (Jan 4 high) but stopped short of a key resistance at $81.45.
  • Gold is +0.9% at $2046.58 off earlier highs of $2062.26, buoyed by the aforementioned geopolitical risk. The earlier high stopped just short of resistance at $2064.0 (Jan 5 high).
  • Weekly moves: WTI -1.5%, Brent -0.6%, Gold +0.1%, US nat gas +15%, EU TTF nat gas -7.4%
Energy BulletsCommodities
Energy BulletsCommodities

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