Oil and gold markets showed stability in early trading on November 27, 2024, as investors evaluated the implications of a ceasefire agreement between Israel and Hezbollah and awaited key US inflation data.
Brent crude futures experienced a marginal decline of 2 cents, settling at $72.79 per barrel, while US West Texas Intermediate (WTI) crude futures decreased by 4 cents to $68.73 per barrel. The ceasefire, brokered by the US and France, is set to commence on Wednesday, potentially concluding the conflict. Analysts are monitoring the ceasefire’s durability, given its potential impact on oil market stability.
In the US, crude oil inventories declined by 5.94 million barrels for the week ending November 22, surpassing analysts’ expectations of a 600,000-barrel decrease. This substantial drawdown indicates a tightening supply, which could influence future pricing.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) are scheduled to meet on December 1. Discussions are anticipated to focus on potential adjustments to production levels in response to current market conditions. Goldman Sachs has reported that production cuts by OPEC+ members, including Iraq, Kazakhstan and Russia, have led to a decline in crude production, which may provide short-term support to Brent oil prices. The investment bank expects Saudi Arabia to extend its production cuts due to recent price drops, now projecting these cuts to last until April 2025 instead of January.
Gold market movements
Gold prices remained steady, with spot gold trading at $2,635.56 per ounce, moving within a narrow range. Investors are closely monitoring upcoming US inflation data, which could influence the Federal Reserve’s decision on a potential rate cut in December. US gold futures rose 0.6% to $2,635.80.
Other precious metals showed minor fluctuations:
- Silver in spot transactions decreased by 0.1% to $30.39 per ounce.
- Platinum remained stable at $927.45 per ounce.
- Palladium declined by 0.4% to $973.50 per ounce.
