Commodity Wrap: Gold stays stable as oil settles as suppliers deal with challenging Red Sea conditions

 Commodity Wrap: Gold stays stable as oil settles as suppliers deal with challenging Red Sea conditions

Commodity Wrap: Gold stays stable as oil settles as suppliers deal with challenging Red Sea conditions

At $81.02 a barrel, Brent oil futures were down 5 cents, or 0.1 percent, on the day.

One significant element affecting sentiment in the oil market is the Israeli military's continuing assault in Gaza.

On December 27, there was little movement in oil prices as investors kept a tight eye on events in the Red Sea. Some large ships have started to pass through the Red Sea again, in spite of the continuous assaults and the increased tensions in the wider Middle East.

According to analysts, the state of the area, in particular incidents that affect important shipping routes and possible interruptions, may have an effect on oil prices via their effects on the dynamics of supply and transportation in the energy market.

While US West Texas Intermediate (WTI) oil was slightly down by 12 cents, or 0.2 percent, at $81.02 a barrel, Brent crude futures were down only 5 cents, or 0.1 percent, at same price. closed at a barrel price of $75.45.

The US WTI and Brent oil benchmarks had both increased by more than 2% during the previous trading session. Concerns about possible shipping delays in the Red Sea as a result of more ship assaults dampened market mood. The prior session's good performance of oil prices was also aided by forecasts of a US interest rate decrease in 2024, which might spur economic growth and raise fuel consumption.

One significant aspect affecting market mood is the Israeli military's continuing assault in Gaza. According to Israel's Chief of Staff Harzi Halevi, "several months" are anticipated to pass before the combat in Gaza ends.

The consulting division of MK Global Financial Services, MK Wealth Management, predicts that Brent oil will likely exhibit a range-bound trend in the near future, with some room for decline.

In the last week of the year, trade was still slow, and on December 27, gold prices were unchanged. But due to predictions that the Fed would lower interest rates in the first quarter of 2024, gold is poised for its greatest year in the previous three.

The cost of gold is still rising.

At $2,064.79 an ounce, spot gold was down 0.1 percent from its two-week high set on December 22.

The government has granted Indian banks permission to import gold at reduced tariff rates from the United Arab Emirates (UAE) in order to ease the import of gold. The action is compliant with the free trade agreement (FTA) between India and the United Arab Emirates, according to many media reports citing sources.