- Crude Oil
Oil prices rebounded slightly on Wednesday on short-covering a day after they fell near a two-week low on OPEC’s reduced demand forecast, but gains were limited as the dollar hit a seven-month high. On Tuesday, the benchmarks closed at their lowest level in nearly two weeks after the Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecasts for 2024 and 2025, citing weak demand in China, India, and other regions. It was the producer group’s fourth straight downward revision for 2024. Both U.S. and global oil production are set to rise to slightly larger record highs this year than prior forecasts, the U.S. Energy Information Administration said.U.S. oil output is now expected to average 13.23 million barrels per day (bpd) this year and global production is set to reach 102.6 million bpd. The International Energy Agency, which has a much lower demand growth forecast than OPEC’s, is set to publish its updated estimate on Thursday.
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman have underscored the importance of continuing a “close coordination” within OPEC+ during a phone call on Wednesday, also providing some support.
On the supply side, markets could still face disruption from Iran or further conflict between Iran and Israel.
As per John Helms report, Crude WTI Dec, Resistance levels are at $69.60 and $70.61, while Support levels are at $67.14 and $65.99. Brent Jan, Resistance levels are at $73.24 and $74.14 while Support at $71.08 and $69.68.
Gulf MarketsThe ADX General is rising 0.4% at 9,412.49 in Abu Dhabi. International Holding Co. PJSC contributed the most to the index gain, increasing 1.2%. Sharjah Cement & Industrial Development Co. had the largest increase, rising 6.5%.
The DFM General Index is rising for the fourth day, climbing 0.1%, or 5.71 to 4,738.52 in Dubai. Emaar Properties PJSC contributed the most to the index gain, increasing 1.3%. Amlak Finance PJSC had the largest increase, rising 5.6%.
The Tadawul All Share Index opened 0.1% lower, dropping 17.52 to 11,912.93, as stocks lose for the third straight day in Riyadh. In early trading, telecommunications stocks led the market lower, as 11 of 20 sectors lost; 108 of 237 shares fell, while 92 rose.
Oil fell as a surging US dollar weighed on commodities, and concerns about demand growth tarnished the outlook for prices.
Global benchmark Brent dropped toward $72 a barrel, while West Texas Intermediate was near $68. The US currency has rallied to the highest level in two years in the aftermath of Donald Trumpâs election win. That makes raw materials priced in the greenback more costly for most buyers, and crudeâs drop came alongside losses in other commodities including copper.
Chinaâs weakening profile in the global oil market remains a concern, with the US Energy Information Administration saying midweek that India was now the leading source of demand growth in Asia as Chinese consumption falters due to its slowdown and electric-vehicle penetration. Further analysis will come later Thursday from the International Energy Agency.GoldGold plunged further to an 8-week low, trading lower for the fifth straight session. The sharp rally in the greenback to a two-year high has exerted considerable pressure on the precious metal. Moreover, although Octoberâs headline inflation print came in line with expectations at 2.6%, it marked an uptick from 2.4% in September. Furthermore, the three-month core rate accelerated an annualized pace of 3.6% – marking the fastest pace since April. Resilient consumer spending and economic growth, in addition to the potential inflationary implications of Trumpâs policies, has collectively presented the risk of few Fed rate cuts. This is weighing on gold.
Although prices have plunged 7% from the record high on October 31, they remain higher by 25% on a year-to-date basis. Rate-cut optimism, central bank purchases, and haven demand from geopolitical and economic risks have contributed to the rally. Gold is trading lower by 0.51% at $2,559. It has immediate 100-SMA support at $2,543. If it breaks below this level, it could fall further to $2,482. Meanwhile, it could encounter resistance at $2,584 and $2,593.
Gold prices in the UAE today are as follows:
24 Carat â AED 310.50
22 Carat â AED 287.50
21 Carat â AED 278.25
18 Carat â AED 238.50
