[MARKET ANALYSIS] Crude pulls back following yesterday's surge; geopolitical updates light
- Crude futures post mild losses following the prior day’s surge, which saw WTI settle USD 5bbl higher and Brent over USD 6/bbl higher. Major macro newsflow has been light during APAC hours, although reports suggested the US military is closer to resuming combat operations than 24 hours ago.
- Spot gold found support above the USD 4,500/oz level and holds a modestly positive tilt in APAC trade despite the lack of newsflow and the thin liquidity, but likely a consolidation following the prior day’s selloff.
- Copper futures trade slightly firmer as prices clamber off the lows seen during the prior day’s selloff, whilst the LME today returns from its long weekend.
Context
Crude oil prices are experiencing a pullback after a significant surge, which suggests some profit-taking could be occurring after such sharp gains. The geopolitical backdrop remains tenuous with the U.S. military reportedly moving closer to resuming operations, which could create volatility in energy markets going forward. Overall, while current movements in oil and metals hint at some market consolidation, traders should remain attentive to any rapid shifts in geopolitical developments.
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