Oil Prices Rise Amid Strait of Hormuz Concerns as Gold and Copper Rally
Oil prices have continued to rise for the third consecutive session, with ICE Brent holding above $91 per barrel. The upward trend is attributed to persistent worries over Strait of Hormuz security and US President Donald Trump's decision not to renew the US-Iran peace agreement.
Saudi Arabia has started offering crude cargoes from Omani coastal locations, indicating efforts to diversify export routes beyond the Persian Gulf. China's refinery throughput dropped 15.8% year-on-year to 12.5 million barrels per day in July, pointing to subdued refining activity.
US natural gas prices have retreated 3.5%, under pressure from higher output, cooler weather outlooks, and ample storage. Inventories were at 3.15 trillion cubic feet as of August 7, 6.7% above the five-year norm.
In base metals, gold has extended its rally, with prices staying above $4,400 per ounce after a sharp rebound from July lows near $3,900 per ounce. A softer US dollar and rising conviction that the Federal Reserve is nearing the end of its tightening cycle have reduced the drag from higher interest rates.
Copper has advanced, with three-month LME contracts trading above $14,000 per tonne and nearing record peaks seen earlier this year. The rally remains underpinned by tightening nearby conditions and limited metal availability.