Oil prices rose in early Asian trading today, Tuesday, amid expectations that the OPEC Plus group may agree to a significant reduction in crude production when its members meet tomorrow, Wednesday, but concerns about the global economy limited gains, and gold prices recorded their highest level in 3 weeks, with a decline The dollar and US Treasury yields.
Brent crude futures rose one dollar to 89.86 dollars a barrel in trading on Tuesday morning, after gaining more than 4% in the previous session.
US crude futures also increased 0.3% to $83.85 a barrel, and it had risen by more than 5% in the previous session, recording its biggest daily gain since last May.
Oil prices rose on Monday, against the backdrop of renewed concerns about a tight supply, while expectations indicate that the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as “OPEC Plus”, will reduce production by more than one million barrels per day in their first personal meeting. Since 2020 tomorrow Wednesday.
OPEC sources said voluntary cuts by members could also occur, making it the biggest cut since the start of the COVID-19 pandemic.
And the OPEC Plus group boosted production this year after record cuts in 2020 due to the damage to demand caused by the Corona pandemic, but the group failed in the past few months to meet the planned increases in production, which it did not achieve last July by 2.9 million barrels per day.
Oil prices have fallen for four consecutive months, as the Covid-19 shutdown in China - the largest oil importer - curbed demand, while higher interest rates and the dollar put pressure on global financial markets.
Major central banks embarked on the biggest round of interest rate increases in decades, raising fears of a global economic slowdown.
A preliminary poll by Reuters on Monday showed that US crude oil inventories increased by about two million barrels in the week ending on September 30.
gold jumps
At the same time, gold prices recorded their highest level in 3 weeks today, Tuesday, motivating all precious metals to achieve gains, with the dollar and US Treasury bond yields falling again after recording their highest levels in years, which restored the attractiveness of the non-yielding precious metal.
And gold rose in spot transactions 2.5% to 1707.20 dollars an ounce (an ounce) by 07:25 UTC, after earlier touching the highest level since September 13 at 1710.39 dollars.
US gold futures rose 0.9% to $1,717.60.
The dollar index fell 0.5%, making gold less expensive for buyers abroad, and US 10-year Treasury yields fell.
As for other precious metals, the price of silver in spot transactions jumped by 1% to $20.96 an ounce, after hitting its highest level since last June.
The price of palladium also jumped by about 4.2%, before recording an increase of 3.3% in the latest trading to $ 2294.79, and platinum rose 1.2 percent to $ 912.85 an ounce.