Oil prices expanded their gains on Tuesday. Brent crude was trading close to $ 80 a barrel, despite the rapid spread of the omicron variant of the coronavirus, supported by supply cuts and expectations that US inventories will decline last week.
Brent oil was up $ 1.04 mid-session Tuesday, or 1.3 percent, at $ 79.64 a barrel. While West Texas Intermediate in the United States (WTI) earned $ 1.15, or 1.5 percent, at $ 76.72.
- Both contracts were operating at their highest levels in a month.
Analysis // “Support also comes from high aggregate production disruptions in Ecuador, Libya and Nigeria, and the expectation of another big drop in US crude inventories,” said Giovanni Staunovo, an analyst at UBS.
- All three countries declared force majeure this month on part of their crude production due to maintenance problems and oil field closures.
Gold, at one-month highs
Gold prices were also higher on Tuesday due to a weaker dollar.
Spot gold was up 0.3 percent to $ 1,815.39 an ounce, after hitting its highest since Nov. 22 at $ 1,816. Gold futures in the United States were up 0.4 percent at $ 1,816.60.
Analysis // “Although there are concerns about the omicron variant, investment demand is quite flat. So this is a year-end rally as there is still some appetite for risk,” said Jigar Trivedi, commodities analyst by runner Anand Rathi Shares.
“Gold may not go too high in the absence of important economic data and stay in this range,” added Trivedi.
The positive sentiment on the bullion at the moment is the result of a weaker dollar.