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The Metals Selloff Is Creating New Winners And Losers
Metals markets remain in a delicate tug-of-war, with structural deficits and massive AI-driven data center infrastructure buildout providing forward momentum, while global growth reassessments, high energy prices and the growing risk of interest rate increases increasingly challenge the bullish thesis. Base metals prices have been highly volatile so far in the current year, with the LMEX hitting an all-time high in early June before plunging to a 3-month low a couple of weeks later after the...
Brazil’s Oil Boom Is Accelerating as Asian Buyers Flee the Middle East
Since Middle East hostilities reignited, oil prices have soared higher, although they remain below the highs witnessed during April 2026. This can be blamed on U.S. strikes against Iran, with Tehran and Washington disrupting traffic in the Strait of Hormuz, through which a fifth of global hydrocarbon supplies are shipped. This has sparked greater demand for Brazil’s high-quality oil grades, notably from Asia, because there is no need for shipments to pass through contested waters. This will...
Kevin Warsh has homed in on three key phrases. How Fed watchers interpret them
In five public appearances, Warsh has used the phrase "family fight" 13 times, returning to "first principles" 11 times and "inflation is a choice" for the Fed six times.
LNG Supply Crisis Pushes Buyers Toward Coal and Oil
The resumption of the Iran conflict, including the effective closures of the Strait of Hormuz and now the Strait of Bab el-Mandeb has driven up natural gas prices, particularly in Europe and Asia. Asia accounts for nearly 90% of liquefied natural gas (LNG) shipments from key Middle East producers like Qatar and the UAE, while Europe imports 7-11% of its LNG imports from the region. European gas prices surged to four-month highs amid fears the US-Iran war will cause winter shortages. As The...
US Oil, Product Inventories See Builds Across the Board
Crude oil inventories in the United States saw an increase of 2.0 million barrels during the week ending July 17, according to new data from the U.S. Energy Information Administration (EIA) released on Wednesday. The increase brings commercial stockpiles to 411.7 million barrels, according to government data, which are now 6% below the five-year average for this time of year. The EIA’s data release follows API’s figures that were released a day earlier, which reported that crude oil inventories...
Europe Heads Into Winter With Its Weakest Gas Cushion In 15 Years
Europe is unlikely to refill its natural gas storage facilities to even 80% before winter, Equinor CEO Anders Opedal said on Wednesday, Reuters reported, raising the prospect that the continent will enter the heating season with its smallest supply buffer in years. European gas storage sites are currently about 54% full, the second-lowest level for this point in the year in 15 years and well below the five-year average, according to Equinor and Gas Infrastructure Europe data. Earlier this...
Oil Climbs on Middle East Escalation, But Markets Resist Full Risk-Off Shift
Geopolitical tensions remained firmly in focus on Wednesday as conflict in the Middle East entered its eleventh consecutive day of US military strikes and expanded into the Red Sea, keeping Brent crude hovering near $95 a barrel. Yet outside the energy market, investor reaction remained notably restrained. Asian equities ended mixed, major European indexes traded […] The post Oil Climbs on Middle East Escalation, But Markets Resist Full Risk-Off Shift appeared first on ActionForex.
Pakistan Scrambles for Oil Alternatives as Hormuz, Red Sea Risks Mount
Pakistan’s refiners are inquiring traders about potential crude oil supply from the U.S., Nigeria, Singapore, and central Asia, amid the escalating crisis in the Middle East that threatens supply from both the Strait of Hormuz and the Red Sea. Following a meeting with the federal minister for petroleum and natural resources, who briefed industry representatives on the growing threats to crude oil supply, refiners have intensified efforts to secure cargoes from non-Middle Eastern producers,...
Oil Jumps Nearly 4% as Houthis Threaten Red Sea Blockade
Oil prices jumped by nearly 4% early on Wednesday as concerns about crude supply from the Middle East intensify with threats to shipping at both chokepoints in the region, the Strait of Hormuz and the Bab el-Mandeb Strait. Brent Crude prices jumped by 3.75% to trade at $94.42, following reports that the Iran-aligned Houthis are ready to attempt the closure of Bab el-Mandeb, which would choke supply from the Saudi port of Yanbu on the Red Sea. The U.S. benchmark, WTI Crude, was rising by 3.69%...
US – Fed Preview: A Divided Hold
We expect the Federal Reserve to remain on hold in the July meeting, in line with consensus. Markets price in 20-25% probability for a hike. Without new projections or forward guidance from Warsh, the focus will be on the vote split. We think the most likely outcome is 2-4 votes in favour of a hike. […] The post US – Fed Preview: A Divided Hold appeared first on ActionForex.
Gold: The Floor Has Been Found, but Where Is the Ceiling?
The strong support at 4,000 helps gold defy the fundamentals. Rising Treasury yields and a strong US dollar are creating headwinds. The US dollar staged a four-day growth against the backdrop of air strikes on Iran. Rumours of a temporary ceasefire have not been confirmed, pushing Brent to near $93 per barrel and fuelling inflation […] The post Gold: The Floor Has Been Found, but Where Is the Ceiling? appeared first on ActionForex.
Japan’s Power Prices Soar to 3.5-Year High
Japan’s day-ahead spot electricity prices surged on Wednesday to the highest level in three and a half years as soaring fuel costs, heat waves, and a weakening Japanese currency have combined to push power prices higher this summer. Data from the Japan Electric Power Exchange showed that nationwide day-ahead spot price surged to $0.15 (24.78 Japanese yen) per kilowatt-hour (kWh) on Wednesday, Bloomberg reports. The price has surged by 24% so far this week and hit on Wednesday the highest level...