Commodities: Oil rises on Syria, metals continue to trade lower
Oil futures rose on news that US President Barack Obama has authorised entry of the country’s Special Forces into the Syrian conflict on Friday, while metals continued with yet another lacklustre session.
Brent Crude
$72.56
23:00 15/11/24
Gold
$2,567.30
23:00 15/11/24
According to US officials quoted by the BBC, the Special Forces will be deployed in Syria to assist anti-government rebels in the fight against Islamic State militants. There will be “fewer than 50” forces on the ground, in what marks the first involvement of US troops in the region, although US forces have previously conducted air raids on IS earlier this year.
Officials said the forces will be deployed in Northern Syria.
At 1612 GMT, the Brent front-month futures contract for December delivery was up 1.29% or 63 cents at $49.43 per barrel. The WTI was up 0.74% or 34 cents at $46.40 per barrel, with both benchmarks responding to the development.
Meanwhile, analysts at Barclays said a shift in crude oil quality and end-user demand is occurring. “Light tight oil growth is flat lining while medium and heavy sour supplies look set to stage a comeback next year.
“Overall, we remain bullish versus the curve and have not changed our price targets – a widening of Brent-WTI in the first quarter to $6, $63 Brent for the year, and a temporary $70 Brent for fourth quarter of 2016.”
Gold futures continued in negative territory for yet another session, in the wake of the US Federal Reserve maintaining interest rates unchanged at 0.25%, in line with market expectations but leaving the door open to an increase in December.
The move continues to dent confidence in the precious metals market. COMEX gold futures contract was down 0.64% or $7.40 at $1,139.90 an ounce, while spot gold was 0.36% or $4.18 lower at $1,141.79 an ounce extending the previous session's losses.
COMEX silver fell 0.13% or four cents to $15.53 an ounce, while spot platinum was 0.35% or $3.52 lower at $988.18 an ounce. Meanwhile, base metals futures continued lower in late afternoon European trading as well.
Past the midway point of the session, primary aluminium (up 0.5%) was the only London Metal Exchange three-month delivery contract in positive territory. Nickel (down 3.4%), copper (down 0.8%), lead (down 0.8%), tin (down 1.8%), and zinc (down 0.3%) were all trading lower.
Finally, headline agricultural commodities futures were trading up. CBOT corn (up 0.79%), wheat (up 1.53%), ICE cocoa (up 1.15%) and cotton (up 1.17%) were all in positive territory in early trading stateside.