Oil prices closed higher on Tuesday, May 28, 2024, following holidays in London and New York.
Geopolitical tensions in the Middle East, particularly Israel’s actions in Gaza, have increased risk premiums for oil.
Market participants are closely watching the upcoming OPEC+ meeting this weekend, which is expected to discuss further production cuts.
On the New York Mercantile Exchange (Nymex), July West Texas Intermediate (WTI) crude rose by 2.71% ($2.11), closing at $79.83 per barrel.
Meanwhile, on the Intercontinental Exchange (ICE), August Brent crude increased by 1.28% ($1.06), settling at $83.94 per barrel.
The recent Israeli attack on Rafah in southern Gaza continues to influence trading desks. This has drawn international criticism.
In response, Spain, Ireland, and Norway officially recognized the State of Palestine based on pre-1967 borders, including Gaza, the West Bank, and East Jerusalem.
ING predicts that OPEC+ will likely extend current production cuts in their upcoming Sunday meeting.
“There is a risk that OPEC+ might tighten the market too much in the third quarter of this year,” warned ING.
Resilience and Dynamics in the Oil Market
Geopolitical and supply concerns frequently drive temporary spikes in oil prices. However, the oil market has shown increased resilience to supply shocks over recent years, noted Julius Baer.
“The year has brought significant geopolitical noise. Oil prices rose above $90 in April due to fears of escalating tensions in the Middle East.
During these phases, the oil market temporarily incorporates a risk premium, reflecting uncertainty and potential supply disruptions,” assessed Julius Baer.
The Middle East remains crucial for oil supply. Its perceived dependence may be outdated. There is now ample spare production capacity.
Increased trade options exist with growing outputs in the United States, Brazil, and Guyana. There is also substantial oil storage.
The geopolitical landscape and production decisions from OPEC+ will continue to shape oil market dynamics. Understanding these factors is essential for anticipating future price movements.
Managing market risks depends on close monitoring of these developments. Investors and stakeholders should make informed decisions based on these insights.
Live Market IntelligenceCommodities — Live Market Board
Rio Times · Live Market Intelligence
Commodities — Live Market Board
+0.27%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 3,888 | +0.06% | -7.32% | 3,885 | 3,927 | 3,871 | 151,010 |
| SILVER | 48.65 | -2.65% | -8.34% | 49.97 | 50.73 | 48.41 | 49,657 |
| BRENT | 96.08 | +0.27% | +52.48% | 95.82 | 97.12 | 95.07 | 22,079 |
| WTI | 88.92 | +0.20% | +51.51% | 88.74 | 89.64 | 87.80 | 181,210 |
| COPPER | 6.06 | -1.93% | +19.17% | 6.18 | 6.24 | 6.05 | 53,682 |
| LITHIUM | 58.76 | -1.13% | -7.86% | 59.43 | 59.59 | 58.42 | 159,392 |
| IRON ORE | 161.91 | — | +55.61% | 161.91 | 161.91 | 1 | |
| SOY | 1,233 | +0.47% | +8.90% | 1,227 | 1,241 | 1,219 | 103,557 |
| CORN | 446.00 | +0.79% | +1.02% | 442.50 | 450.25 | 441.75 | 245,686 |
| WHEAT | 593.50 | +1.58% | +10.78% | 584.25 | 600.00 | 582.00 | 99,685 |
| COFFEE | 274.00 | -2.21% | -31.79% | 280.20 | 279.20 | 272.35 | 17,133 |
| SUGAR | 18.40 | +0.99% | +27.42% | 18.22 | 18.54 | 18.16 | 59,813 |
| COCOA | 5,267 | +3.97% | -4.01% | 5,066 | 5,330 | 5,169 | 27,100 |
| ORANGE JUICE | 136.85 | -2.91% | -17.41% | 140.95 | 141.25 | 135.00 | 973 |
| COTTON | 79.02 | +0.44% | +25.63% | 78.67 | 79.90 | 78.63 | 18,270 |
| BEEF | 224.93 | +2.75% | +2.71% | 218.90 | 225.88 | 221.45 | 23,034 |
| CATTLE | 335.65 | -0.01% | -0.40% | 335.67 | 336.98 | 329.53 | 9,700 |
| USD/BRL | 5.67 | +0.45% | +7.09% | 5.64 | 5.67 | 5.63 | — |
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.