Commodities: Crude rises despite rising US rig count as sterling gains on dollar
Crude-oil futures are ahead Monday despite a rising rig count in the US, with sterling gaining against the US dollar as the UK Brexit Bill goes before the House of Lords for discussion.
US markets are closed for the Presidents Day holiday. At 15:03 GMT, Nymex-quoted West Texas Intermediate crude was up 0.41% to $53.62 a barrel, with Intercontinental Exchange-traded Brent up 0.52% to $56.10 a barrel.
"Despite the Baker Hughes Rig Count increasing for a fifth straight week on Friday to a 16-month high, crude oil prices have climbed steadily higher overnight as the USD softens in Asian trading," said Accendo Markets analyst Mike van Dulken and Henry Croft.
"Investors will continue to weigh up the impact of rising US production in offsetting OPEC's cuts, however reports showing record compliance by the cartel's members is helping to keep prices supported," the pair said.
SwissQuote observed that WTI crude was heading towards resistance at $54.32 a barrel.
"Yet, a correction in the near-term towards $49.61 is possible in case support at $50.71 is broken. The black commodity needs to push higher to confirm deeper buying pressures."
Longer term, SwissQuote considered further weakness was very likely for WTI.
Meantime, on Comex, gold was down 0.08% to $1238.1 an ounce, while silver eased 0.25% to $17.99 an ounce and industrial-favourite copper rose 0.94% to 274.55 cents a pound.
Van Dulken and Croft opined that gold remained in a sideways channel, holding steady at $1,234 an ounce.
"This comes after Friday's sell-off from $1244 as US Federal Reserve Chair Janet Yellen once again showed her hawkish hand, prompting a greenback rally while demand for the non-yielding precious metal declined," they said.
"With no Fed speakers scheduled today on account of the US holiday, investors will have to wait until tomorrow for any further comment from the States’ central bankers."
SwissQuote said gold's support was now at $1,221 an ounce, and that in the long-term the technical structure suggested there was a growing upside momentum.
"A break of $1392 is necessary to confirm it, A major support can be found at $1,045."
On London Metals Exchange, three-month industrial metals copper, aluminum and zinc were firmly lower, while tin made a minor gain.
Among agriculturals, Chicago Board of Trade-priced corn fell 1.44% to 375.5 cents a bushel, and wheat was down 1.25% to 455.5 cents a bushel.
On ICE, cocoa was down 2.06% to $2000 a MT, and cotton No.2 was down 1.63% to 75.52 cents a pound. Live cattle rose 1.48% to 114.93 cents a pound.