On Thursday, oil prices increased significantly after Trump revoked Chevron’s license to operate in Venezuela, raising concerns over global supply. Brent crude rose 2.1% to $74.04, while US crude climbed 2.5% to $70.35. Concurrently, gold prices fell to two-week lows due to a strong dollar, with market volatility persisting amid forthcoming economic data releases.
Oil prices increased on Thursday, following US President Donald Trump’s revocation of Chevron’s license to operate in Venezuela. The move raised concerns regarding potential global supply disruptions. Brent crude futures rose by 2.1% to $74.04 per barrel, while US crude futures for April increased by 2.5% to $70.35 per barrel.
In the backdrop of these oil price rises, OPEC+ is reportedly contemplating an increase in oil production in April amidst ongoing US sanctions against Venezuela, Iran, and Russia. The market is reacting to renewed tensions affecting the supply chain, as highlighted by recent geopolitical shifts.
In other trading news, gold prices dropped to the lowest levels since February 7, influenced by a strong dollar that surged against other currencies. The dollar index finished up by 0.8% to 107.2, as economic data revealed a quarterly GDP growth of 2.3% in the fourth quarter, albeit lower than the previous quarter’s increase of 3.1%.
Furthermore, unemployment claims in the United States rose by 22,000 to a three-month high of 242,000, surpassing estimates. Trump also announced that he would enforce a 25% tariff on commodities from Mexico and Canada starting in early March, further complicating international trade.
The Canadian dollar decreased by 0.7% against the US dollar to 0.6922, and the Australian dollar declined by 1.1% to 0.6235. Meanwhile, gold spot prices fell by 1.6% to $2877 per ounce, reflecting ongoing profit-taking and market volatility.
Investors are now focused on upcoming crucial data regarding GDP growth and unemployment, as well as statements from Federal Reserve officials regarding monetary policy and inflation. The likelihood of a Federal Reserve interest rate cut in March has diminished, with a probability of only 2.5%.
Additionally, gold holdings at the SPDR Gold Trust have dropped by 0.86 tons, settling at 906.96 tons, highlighting a trend away from previous highs. This development mirrors the cautious approach of investors amidst fluctuating economic indicators and potential policy shifts.
In summary, oil prices have experienced a notable surge due to geopolitical developments, especially Trump’s actions regarding Chevron in Venezuela. Concurrently, gold prices have fallen in response to a stronger dollar and ongoing economic shifts. Investors are keenly awaiting further economic data and Federal Reserve commentary that could influence future market dynamics. The Canadian and Australian dollars have also weakened against the US dollar, reflecting broader currency trends. Overall, the market remains dynamic, with implications for both commodities and currency trading as various economic factors unfold.
Original Source: www.economies.com
