Commodity Markets: Oil Steady, Silver Rising: Commodity markets are experiencing significant volatility.
Oil prices stabilized near their six-month lows,
while silver continued its upward trajectory as the dollar weakened and trade concerns escalated.
These movements come amid ongoing economic tensions resulting from global trade policies.
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Oil Under Pressure from Trade Tensions
Oil prices have stabilized at their low levels,
with West Texas Intermediate (WTI) crude trading around $66 per barrel
after losing more than 5% over the past four sessions.
Meanwhile, Brent crude closed below $70.
These declines stem from the tariffs imposed by former U.S. President Donald Trump,
which have heightened concerns about declining energy demand.
Despite Trump’s announcement that he will delay some automobile
tariffs and consider exemptions for certain agricultural products,
he remains committed to implementing new tariffs by April 2.
At the same time, the OPEC+ alliance plans to resume its halted production,
adding further pressure on prices.
On a global scale, U.S. refineries have reduced their crude oil purchases from Mexico,
while Canada is preparing new measures to increase its oil exports to Asia and Europe.
Silver Continues to Rise as the Dollar Declines
In contrast, silver prices have continued their gains, reaching a one-week high,
driven by increased demand for safe-haven assets amid trade concerns.
Silver rose by 1.2% during trading, marking its third consecutive day of gains,
while the U.S. dollar index dropped to a three-month low amid Germany’s plans to boost spending and ease borrowing restrictions.
Investors are closely monitoring the impact of tariffs on the global economy,
with Trump warning of potential “economic disruptions” due to these policies.
Forecasts suggest that precious metals like gold and silver could benefit from rising inflation or slowing economic growth.
Future Outlook
With market uncertainty persisting, analysts have begun revising their price forecasts.
Morgan Stanley lowered its estimate for Brent crude prices until the end of the year,
predicting it will trade around $60 per barrel in the year’s second half.
Meanwhile, experts have warned of a potential shortage in the spot silver market in London due to rising industrial demand.
As of 11:41 AM in London, spot silver prices had risen by 0.9% to $32.262 per ounce,
while gold and palladium prices remained stable, and platinum recorded a slight increase.
Commodity Markets: Oil Steady, Silver Rising