Commodities: Brent, WTI futures jump as DoE forecasts higher prices

Commodities were on a tear on Tuesday as trade war concerns ebbed and the US Department of Energy bumped up its short-term forecasts for Brent and West Texas Intermediate.

According to the Energy Information Administration, the DoE's statistical arm, the average price for those two benchmarks of crude oil would be 2% higher in 2018 and 2019 than it had previously anticipated, with the former set to reach $63.36 and $62.68 a barrel, respectively.

Those rosier forecasts from the US government and the improved news-flow on the global trade front saw Brent futures for next month delivery rise 3.54% to $71.08 a barrel on the ICE, alongside a 3.54% move higher for WTI to $65.66 a barrel.

Gasoline futures on NYMEX also jumped, gaining 2.93% to $2.0423 a gallon, as the DoE's Short-Term Energy Outlook showed the average retail price hitting $2.74 in Summer 2018, almost 14% more than in the year before.

Thus, as of 2128 BST, the Bloomberg commodity index was 0.89% higher to 88.8005, alongside a 0.24% dip for the US dollar spot index to 89.625.

After the close of markets, the API reportedly said US oil inventories rose by 1.758m barrels during the latest reference week.

Base metals were also wanted, with May 2018 COMEX copper tacking on 2.0% to $3.1385 a pound.

US gold futures on the other hand were only a tad higher, edging up by 0.25% to $1,343.50/oz. - even as market participants waited on events in Syria.

Grains and soft commodities were mixed but without many outsized moves among the main contracts.

July CBoT soybean meal futures were one exception, erasing 1.45% to $388 per tonne, while ICE-traded sugar lost 1.86% to $00.1213 a pound.