April 29, 2024 18:47 GMT
WTI Falls As Risk Premium Shrinks, Copper Hits Two-Year High
COMMODITIES
- WTI has moved lower as the risk premium associated with potential disruption to Middle Eastern supply shrinks further. The market is gathering hopes of momentum towards a cease-fire in Gaza.
- WTI Jun 24 is down 1.5% at $82.6/bbl.
- WTI futures continue to trade above key short-term support at $81.19, the 50-day EMA. On the upside, key resistance and the bull trigger has been defined at $86.97, the Apr 12 high.
- By contrast, Henry Hub front month is set for its highest close since February 5, as returning flows to Freeport LNG is boosting demand.
- US Natgas Jun 24 is up 5.6% at $2.03/mmbtu
- Spot gold is broadly unchanged on the day at $2,339/oz, as the yellow metal remains rangebound ahead of Wednesday’s FOMC decision.
- Gold remains in consolidation mode. Having last week pierced the 20-day EMA, a continuation lower would signal scope for an extension towards $2238.8, the 50-day EMA. Key resistance and the bull trigger is at $2431.5, the recent Apr 12 high.
- Meanwhile, copper has risen by another 2.4% to $467/lb, a new two-year high. The metal has now rallied around 26% since its mid-February YTD low, as supply concerns continue to bite.
- A bullish theme in copper futures remains intact, with attention on $468.90, a Fibonacci projection.
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