WTI edges higher above $60.00 on geopolitical risks
- WTI price attracts some buyers to $59.54 in Tuesday’s Asian session.
Iranian security forces have killed hundreds of protesters, and Trump said the - US is monitoring the situation “closely.”
- Markets weigh escalating geopolitical risks against the prospect of additional sanctions supply returning to the market.
Texas Intermediate (WTI), the US crude oil benchmark, is trading around $59.55 during the early Asian trading hours on Tuesday. The WTI price gains traction over one-month highs amid rising tensions in Iran. Traders brace for the release of the American Petroleum Institute (API) crude oil stockpiles report on Tuesday.
Reuters reported on Monday that US President Donald Trump said that any country that does business with Iran will face a tariff rate of 25% on any business conducted with the United States. This action came after Trump threatened repercussions if Iranian authorities target civilians, while Tehran warned the US and Israel against any intervention
“Markets seem more focused on the intensifying unrest in Iran amid heated rhetoric and resilient fundamentals,” said Amarpreet Singh, Barclays’ analyst.
Nonetheless, prospects for more supply from Venezuela might cap the upside for th
WTI price. Trump said last week that Venezuela’s interim government agreed to give as many as 50 million barrels of “high-quality, sanctioned oil” to the US. Trump added that the US wants full access to Venezuela’s oil following the arrest of former President Nicolas Maduro by US forces over the weekend.
The API crude oil stockpiles report will be the highlight later in the day. A larger-than-expected crude oil inventory draw indicates stronger demand and could boost the WTI price, while a bigger build than estimated signals weaker demand or excess supply, whic might drag the WTI price lower.
Silver FAQs
Silver is a precious metal highly traded among investors. It has been historically used as a store of value and a medium of exchange. Although less popular than Gold, traders may turn to Silver to diversify their investment portfolio, for its intrinsic value or as a potential hedge during high-inflation periods. Investors can buy physical Silver, in coins or in bars, or trade it through vehicles such as Exchange Traded Funds, which track its price on international markets.
Silver prices can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can make Silver price escalate due to its safe-haven status, although to a lesser extent than Gold's. As a yieldless asset, Silver tends to rise with lower interest rates. Its moves also depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAG/USD). A strong Dollar tends to keep the price of Silver at bay, whereas a weaker Dollar is likely to propel prices up. Other factors such as investment demand, mining supply – Silver is much more abundant than Gold – and recycling rates can also affect prices.
Silver is widely used in industry, particularly in sectors such as electronics or solar energy, as it has one of the highest electric conductivity of all metals – more than Copper and Gold. A surge in demand can increase prices, while a decline tends to lower them. Dynamics in the US, Chinese and Indian economies can also contribute to price swings: for the US and particularly China, their big industrial sectors use Silver in various processes; in India, consumers’ demand for the precious metal for jewellery also plays a key role in setting prices.
Silver prices tend to follow Gold's moves. When Gold prices rise, Silver typically follows suit, as their status as safe-haven assets is similar. The Gold/Silver ratio, which shows the number of ounces of Silver needed to equal the value of one ounce of Gold, may help to determine the relative valuation between both metals. Some investors may consider a high ratio as an indicator that Silver is undervalued, or Gold is overvalued. On the contrary, a low ratio might suggest that Gold is undervalued relative to Silver.
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