Oil Prices Nudge Higher Ahead of OPEC+ Meeting

FILE PHOTO: A man is seen at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province, China October 24, 2019. REUTERS/Stringer/File Photo
FILE PHOTO: A man is seen at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province, China October 24, 2019. REUTERS/Stringer/File Photo
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Oil Prices Nudge Higher Ahead of OPEC+ Meeting

FILE PHOTO: A man is seen at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province, China October 24, 2019. REUTERS/Stringer/File Photo
FILE PHOTO: A man is seen at an exit of the refinery plants of Chambroad Petrochemicals in Binzhou, Shandong province, China October 24, 2019. REUTERS/Stringer/File Photo

Oil prices climbed nearly 1% on Tuesday, as traders awaited the outcome of an OPEC+ meeting later this week.
Brent crude futures rose 66 cents, or 0.92%, to $72.49 a barrel by 0909 GMT, while US West Texas Intermediate crude climbed 63 cents, or 0.93%, to $68.73, Reuters reported.
OPEC+ is likely to extend its latest round of output cuts until the end of the first quarter at its Dec. 5 meeting, according to sources.
"Given a rise in compliance with production cuts from Russia, Kazakhstan, and Iraq, the lower Brent price level, and indications in press reports, we assume an extension of OPEC+ production cuts till April," Goldman Sachs analysts said in a note.
OPEC+, which accounts for about half of the world's oil production, has been looking to gradually unwind production cuts through 2025.
However, the prospect of an oil market surplus has exerted downward pressure on prices, with Brent trading nearly 6% below its average for December 2023.
"I think there's no other option but to defer it," Priyanka Sachdeva, a senior market analyst at Phillip Nova said, adding that mounting pressure from participant-nations to increase production could cap any extension at a couple of months.
The global oil demand outlook remains weak, with China's crude imports likely to peak as early as next year, as demand for transport fuel begins to decrease, researchers and analysts said.
Concerns that the US Federal Reserve may not cut rates at its December meeting have also capped oil prices.
In the Middle East, holes continued to appear in a US-brokered ceasefire between Israel and Hezbollah, with several people killed in strikes on southern Lebanese towns shortly after Hezbollah fired missiles on an Israeli military position in the disputed Shebaa Farms area on Monday.



Gold Races to Record Highs after Trump's Tariff Threats

(FILES) A photograph taken on April 30, 2024 shows gold bracelets displayed in a shop window on Green Street, east London. (Photo by James RYBACKI / AFP)
(FILES) A photograph taken on April 30, 2024 shows gold bracelets displayed in a shop window on Green Street, east London. (Photo by James RYBACKI / AFP)
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Gold Races to Record Highs after Trump's Tariff Threats

(FILES) A photograph taken on April 30, 2024 shows gold bracelets displayed in a shop window on Green Street, east London. (Photo by James RYBACKI / AFP)
(FILES) A photograph taken on April 30, 2024 shows gold bracelets displayed in a shop window on Green Street, east London. (Photo by James RYBACKI / AFP)

Gold climbed more than 1% on Monday, as US President Donald Trump's latest tariff plans heightened fears of a global trade war, fueling demand for the safe-haven metal and pushing bullion prices to record highs.
Spot gold was up 1.2% at $2,895.38 per ounce, as of 0758 GMT. Earlier in the session, bullion hit an all-time high of $2,896.35, marking its seventh record this year. US gold futures also climbed 1.2% to $2,920.8, Reuters reported.
"Trump announcing new tariffs is supporting inflation and growth concerns, lifting the yellow metal. We look for further price support, with gold heading to $3,000/oz," UBS analyst Giovanni Staunovo said.
Trump said during the weekend that he will announce new 25% tariffs on Monday on all steel and aluminium imports into the US, which would come on top of existing metal duties in another major escalation of his trade policy overhaul.
Trump also said he will announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.
"The potential of gold also getting caught up in the tit-for-tat tariffs is causing a dislocation in the physical market," said Daniel Hynes, senior commodity strategist, ANZ bank.
Federal Reserve officials on Friday noted the lack of clarity over how Trump's policies will affect economic growth and still-elevated inflation, underscoring their no-rush approach to rate cuts as US job market remains solid.
Gold is considered a safe investment during economic and financial turmoil, although higher interest rates reduce the non-yielding asset's appeal.
"I don't see any high probability of a correction yet (in gold) at this juncture, unless we start to see a kind of a very strong US dollar push up," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific.
Spot silver gained 1% to $32.14 per ounce, after rising to its highest level since November on Friday. Platinum added 0.8% to $983.86 and palladium gained 0.6% to $970.15.