. Daily Commodity Analysis-Oil Prices Soar Amid Middle East Tensions, Aluminium Records.

Daily Commodity Analysis – Oil Prices Soar Amid Middle East Tensions, Aluminium Records.

Daily Commodity Analysis – Oil Prices Soar Amid Middle East Tensions, Aluminium Records.

09 Oct 2023

Introduction:

Amidst escalating violence in the Middle East, Brent Crude Oil prices surged by over $3 a barrel in Asian trade on Monday, intensifying concerns over global oil supplies. Analysts at ANZ Bank predict greater volatility as geopolitical risks in the region rise. This reversal in oil prices follows a week of sharp declines driven by worries about rising interest rates and their impact on global demand. Meanwhile, in the aluminum futures market, Q3 witnessed record-breaking growth for the sixth consecutive quarter, with remarkable increases in volume and open interest. Additionally, rising Middle East tensions have sent gold prices soaring, while silver struggles to maintain its recent gains.

Brent Crude Oil:

Oil prices jumps as Middle East violence rattle markets.

As military battles between Israel and the Palestinian Islamist party Hamas intensified political unrest throughout the Middle East and heightened concerns about supplies, oil prices increased by more than $3 a barrel in Asian trade on Monday.

Oil prices should be supported by rising geopolitical risk in the Middle East, according to ANZ Bank analysts, who also predicted greater volatility.

The increase in oil prices reversed last week’s downward trend, which was the worst weekly fall since March. Amid worries about rising interest rates and their effect on global demand, Brent plummeted by about 11%, and WTI fell by more than 8%.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 85.49| Positive Crossover | Bullish
  • MA 20: 87.58 | Negative Crossover | Bearish
  • MA 50: 89.44| Negative Crossover | Bearish

Simple:

  • MA 5: 84.85 | Positive Crossover | Bullish
  • MA 20: 88.29| Negative Crossover | Bearish
  • MA 50: 91.13| Negative Crossover | Bearish

RSI (Relative Strength Index): 39.89 | Selling Zone | Bearish

Stochastic Oscillator: 64.62| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 87.13 | R2: 91.17
  • S1: 85.48| S2: 82.02

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 84.58 | Take Profit: 82.02 | Stop Loss: 86.47.

Aluminum:

Aluminum futures contract break record Q3, marking sixth consecutive quarter of growth.

For the sixth consecutive quarter, the global aluminium futures contract has broken records, with a strong increase in September. Average daily volume (ADV) for the contract during the third quarter was 4,656 contracts, a substantial 98% rise from the same period last year. ADV reached a record 6,118 contracts in September, a 132% increase year over year, representing an even more significant rise. The Chicago-based CME Group released this information on Monday via PRNewswire.

Another essential indicator of market activity, the average daily open interest (ADOI), also saw a notable rise in Q3. The ADOI climbed by an astounding 267% from the previous year, underscoring the Aluminium futures contract’s strong growth and increased activity.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 2081.03 | Positive Crossover | Bullish
  • MA 20: 2033.63 | Positive Crossover | Bullish
  • MA 50: 1985.64 | Positive Crossover | Bullish

Simple:

  • MA 5: 2085.08 | Positive Crossover | Bullish
  • MA 20: 2018.81 | Positive Crossover | Bullish
  • MA 50: 2000.52 | Positive Crossover | Bullish

RSI (Relative Strength Index): 68.61 | Buy Zone | Bullish

Stochastic Oscillator: 100| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 2104.26 | R2: 2156.52
  • S1: 2035.20| S2: 1966.13

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 2121.60 | Take Profit: 2156.52 | Stop Loss: 2098.31.

Elsewhere In the Commodity Market.

The price of gold increases for a second day in a row and reaches a record high on Monday. Rising geopolitical tensions in the Middle East give the safe-haven currency pair XAU/USD a significant boost. XAG/USD struggles to find acceptance above $22.00, retreats from one –week top.

Gold up (0.93%) at 1849.37, Silver up (0.3%) at 21.64, Palladium down (0.37%) at 1153.00, Platinum up (0.91%) at 883.99, Brent Crude Oil up (2.66%) at 86.81, WTI Crude Oil up (3.09%) at 85.33 as of writing time.

Key Economic Events & Data Release Today:

No Major key events today