Oil prices climbed in early trading on Tuesday for a second consecutive session, as markets assessed risks stemming from Ukrainian drone attacks on Russian energy infrastructure, alongside rising tensions between the United States and Venezuela. Meanwhile, gold prices slipped in early trade after touching a six-week high in the previous session.
Brent crude futures rose 0.1% to $63.23 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 0.22% to $59.45 per barrel at the time of reporting. Both benchmark crudes had advanced by more than 1% on Monday.
The Caspian Pipeline Consortium said on Monday that it had resumed oil shipments from one of its mooring points at a Black Sea terminal following a major Ukrainian drone attack on November 29.
Analysts at Ritterbusch and Associates noted in a research memo that ongoing military activity reinforces their view that a peace agreement remains unlikely in the near term, adding that diesel and gas markets may be poised for renewed price increases.
Ukrainian President Volodymyr Zelensky said on Monday that Kyiv’s top priorities remain preserving national sovereignty and securing strong security guarantees, stressing that regional conflicts remain highly complex. U.S. envoy Steven Witkoff is expected to brief the Kremlin on Tuesday.
Meanwhile, ANZ Bank warned that the escalating U.S. campaign against Venezuela has raised concerns about potential disruptions to oil exports. A senior U.S. official said President Donald Trump recently held talks with senior advisers on ways to increase pressure on Venezuela and other issues. Trump stated on Saturday that airspace over and around Venezuela should be considered “completely closed,” without providing further details.
Gold Slips on Higher Yields and Profit-Taking
Gold prices declined after hitting their highest level in six weeks during the previous session, pressured by rising U.S. Treasury yields and profit-taking, as investors await key U.S. economic data for clues on the Federal Reserve’s policy path.
Spot gold fell 0.41% to $4,215.08 per ounce, while U.S. gold futures for December delivery dropped 0.47% to $4,219.20 per ounce.
Tim Waterer, Chief Market Analyst at KCM Trade, told Reuters:
“Gold is underperforming today, but the broader fundamental picture hasn’t changed. Expectations of U.S. interest rate cuts should remain supportive for gold from a yield perspective.”
He added that markets remain cautious, noting that Federal Reserve Chair Jerome Powell appears less inclined toward easing than some of his colleagues. Powell did not comment on the economy or monetary policy during a speech at Stanford University late Monday.
According to the CME FedWatch Tool, markets are pricing in an 88% probability of a Federal Reserve rate cut in December. White House economic adviser Kevin Hassett said on Sunday he would be willing to serve as Fed Chair if selected.
Gold, which does not yield interest, typically benefits from lower interest rate environments.
Other Precious Metals
- Silver fell 0.16% to $57.32 per ounce
- Platinum declined 0.56% to $1,657.21 per ounce
- Palladium rose 0.6% to $1,441.10 per ounce
