Crude Stronger As Commodities Higher & Geopolitical Jitters Resurface

Oil prices are stronger again today rising with most other commodities on a weaker US dollar (USD index -0.1%). Tensions between Israel and Egypt on the Rafah border have supported crude in particular. WTI has approached $79/bbl and is 1.6% higher at $78.92 after an intraday high of $78.95. Brent has held above $83 and is up 0.3% to $83.32, close to the intraday high.

• Geopolitics came into play again with an Egyptian soldier killed in an unusual altercation with Israel on the Gaza border. Israel took control of the Rafah border crossing three weeks ago. An investigation is now taking place. Although geopolitical tensions are never far away, the conflict in Gaza has not disrupted oil flows although Houthi attacks on shipping in the Red Sea have resulted in increased shipping times as vessels go around southern Africa.
• Today the Fed’s Mester & Bowman and ECB’s Schnabel speak from Japan and then later Kashkari, Cook and Daly appear. In terms of data, US March house price and May Conference Board consumer confidence data are released.