Commodities: Crude futures rise ahead of API figures, remain below December highs

Crude-oil futures are higher on Tuesday afternoon but remain below their December highs, with an expectation that prices might now stabilise going forward.

At about 15:34 GMT, Nymex-quoted West Texas Intermediate rose 0.63% to $52.45 a barrel, while Intercontinental Exchange-traded Brent was up 1.46% to $55.72 a barrel.

"With the output cut now agreed between OPEC and non-OPEC nations, we could now see prices stabilise around $50-55 (a barrel) in WTI and $53-58 (a barrel) in Brent," said OANDA senior market analyst Craig Erlam.

"Where we go from here will depend on the implementation of the cuts, which is far from guaranteed and I wouldn’t be surprised to see it hit a few stumbling blocks along the way."

That, of course, could see prices plunge once again. "Especially if it comes at a time when the US is once again ramping up production," Erlam stated.

Michael Hewson, chief market analyst at CMC Markets UK, observed that Brent crude prices continued to remain well supported despite a strong US dollar after reports that Iraq may well cut its output by 200,000 barrels a day in the first half of next year.

Crude's rise was also linked to a due-soon weekly US supply update from the American Petroleum Institute, with the US Energy Information Administration issuing its on Wednesday.

Meantime, on Comex, gold was down 1.16% to $1129.40 an ounce, with silver down 2.01% to $15.77 an ounce and copper lower 0.26% to 249.30 cents a pound.

"Gold and silver prices have also slid back with silver breaking below its June lows to hit its lowest levels since April on the back of a strengthening US dollar," said Hewson.

Mike van Dulken, head of research at Accendo Markets, noted that gold turned back from $1140 an ounce to resume its six-week downtrend channel.

Three-month industrial metals on London Metals Exchange were lower, with copper and zinc particularly so.

Among agriculturals, Chicago Board of Trade-listed corn was down 0.42% to 351.50 cents a bushel, while wheat gained 0.19% to 405.75 cents a bushel.

On ICE, cocoa fell 1.82% to $2261 a MT, and cotton No.2 lost 0.1% to 69.50 cents a pound. Live cattle improved 0.43% to 116.45 cents a pound.