Commodities: Crude higher in technical bounce despite bearish market

Crude-oil futures headed mildly higher thanks to a technical bounce on Friday and amid a market overall bearish towards the price action of the black liquid.

At about 15:17 BST, Nymex-priced West Texas Intermediate crude was up 0.76% to $45.27 a barrel, with Intercontinental Exchange-traded Brent up 0.36% to $47.59 a barrel.

This was as sterling plotted a faintly lower course against both the dollar and euro. The dollar-spot index was broadly flat.

"WTI crude popped higher during Friday's trading session ... but the bias still remains heavily bearish amid oversupply fears," said FXTM's Lukman Otunuga.

The research analyst said crude had remained extremely pressured due to the high global crude stores, meaning gains in price could be treated as a technical bounce for sellers to drive the commodity lower.

"As oil continues to find comfort at depressed levels despite Opec's efforts to stabilise the markets, questions have been raised about whether Opec will introduce further output cuts to reduce the global glut and ultimately prop prices higher."

Otunuga said the cartel's "apparent reluctance to do this" could in effect allow sellers to attack the commodity further.

Turning to metals, on Comex, gold fell 0.06% to $1245 an ounce. Silver rose 0.13% to $16.68 an ounce. Copper was 0.3% ahead at 270.35 cents a pound.

"Gold was pressured below $1255 this week despite the dollar extending its losses and equities falling," said Otunuga.

"Generally speaking, a vulnerable US dollar and depressed stock markets would have the ability to support the yellow metal, however in this case it seems that the prospect of tighter global monetary policy has inspired bears to make a move.

"With hawkish comments this week from central bank heavyweights sparking speculation that the era of cheap money is coming to an end, gold may struggle to maintain its ground in the short term.

"As the Brexit woes, political uncertainty in Washington and concerns over oil's oversupply trigger risk aversion, safe haven assets such as Gold are likely to remain supported in the longer term."

On London Metals Exchange, three-month industrial metals were ahead. Copper and aluminum were each up 1%, while tin rose 2.98% and zinc added 0.79%.