June 06, 2024 18:43 GMT
Crude Markets Extend Recovery, Silver Surges Over 4%
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- Crude markets have found further support on Thursday, with Brent briefly passing the $80/b mark. Upside comes from a moderate fall in the dollar during the afternoon as US yields consolidate at the lowest levels of the week. Prices are also readjusting after a sharp fall following OPEC+’s output plan announced June 2.
- Front month futures are still net down on the week after the bearish reaction to the OPEC+ plan to increase supply later this year. OPEC retains the flexibility to alter that plan depending on market developments.
- OPEC+ will continue to manage the oil market, even with Saudi plans to boost exports in the coming years, the Kingdom’s energy minister Prince Abdulaziz bin Salman said at the St. Petersburg International Economic Forum, cited by Platts.
- Initial resistance for WTI is at $76.15, the May 24 low and a recent breakout level.
- Precious metals are rising and the 0.75% advance for gold has been surpassed by the impressive 4.3% jump for spot silver.
- Gains have been supported by the lower US yields and for silver, upside momentum was exacerbated through the weekly highs around 30.80/88.
- The medium-term trend structure for gold remains bullish and the recent move down appears to be a correction that is allowing an overbought condition to unwind. However, tomorrow’s employment report, combined with CPI and the FOMC meeting are likely to be the key drivers of short-term sentiment.
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