Commodities update: Oil unchanged, gold climbs to post 5th session gain in a row

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commodities update: oil unchanged, gold climbs to post 5th session gain in a row

New Delhi: Oil prices were steady on Thursday after US crude stocks climbed less than expected, while investors awaited further clarity on supply drivers, including an OPEC+ meeting and the looming EU ban on Russian refined products. Brent crude futures were up 16 cents, or 0.2 per cent, to $86.28 per barrel by 0745 GMT. US West Texas Intermediate (WTI) crude futures climbed 31 cents, or 0.4 per cent, to $80.46.

“The market awaits to get more clarity on the upcoming EU embargo on Russian refined products and the subsequent reshuffle of trade flows, while OPEC+ delegates head into their next meeting,” Citi analysts said in a note Thursday.

“The upcoming EU embargo on Russian refined products remains a major source of concern for the market, with widespread dislocations expected to materialise,” the Citi analysts added.

Oil prices were also little changed after data showed a build in US crude inventories that was less than expected.

International gold prices

Gold prices, on the other hand, rallied to hit a nine-month high on Thursday as the dollar index hovered near an eight-month low. Spot gold were little changed at $1,943.51 per ounce, as of 0707 GMT, after hitting $1,949.09 earlier in the day, its highest since April 2022.

According to Edward Moya, senior analyst with OANDA, gold might trade between the $1,935 and $1,960 range until we get to the Fed event. Bullion is a non-yielding asset and stands to benefit amid lower rates, as returns on other assets such as government bonds are reduced.

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Gold in domestic markets

The yellow metal remained steady on Republic Day- January 26, 2023. Gold futures, maturing on February 3, 2023, stood at Rs 57,005 per 10 grams on the MCX in early trade, after recording a marginal rise of Rs 36 or 0.06 percent.