LONDON: Oil prices slipped on Wednesday, under pressure from a rise in US crude and gasoline inventories although crude remained near three-year highs.
Brent futures eased 24 cents to $69.72 a barrel at 0930 GMT, after climbing above $70 this month for first time since 2014. US West Texas Intermediate (WTI) futures were unchanged at $64.47 a barrel.
The American Petroleum Institute said on Tuesday crude inventories rose by 4.8 million barrels in the latest week, compared with expectations for a decline of 1.6 million barrels. Gasoline inventories also rose.
Official US government inventory data is due out later on Wednesday and will watched to see if the numbers confirm a rise.
“The market has rallied by 50 percent and a lot of investors have been involved for a long time,” Saxo Bank senior manager Ole Hansen said.
“At what level would we start to attract some nervousness on the downside?” he said. “We probably need to break below $60 on WTI to put the cat among the pigeons ... It’s going to take more than just a stock-build today to change that equation.”
Money managers hold more bullish positions in crude futures and options than at any time on record, which has been encouraged by falling global inventories on the back of supply cuts by OPEC, Russia and its allies.
But some traders are showing signs of seeking protection against a fall in crude prices. Trading data shows open interest for Brent put options for a selling at $70, $69 and $68 per barrel has climbed since the middle of last week.
Sukrit Vijayakar energy consultancy Trifecta said the rising options to sell were a result of huge amounts of long positions that have been built up in past months.
“We still have ... nine long barrels for every short barrel, so a reversal should be interesting to watch,” he said.
But traders said oil prices were unlikely to fall far as markets were supported by strong global economic growth pushing up oil demand and output restraint by the Organization of the Petroleum Exporting Countries, Russia and others.
The deal to withhold output started in January last year and is currently set to last through 2018.
Oil prices ease as US crude inventories rise unexpectedly
Oil prices ease as US crude inventories rise unexpectedly
Gold slips over 1 percent on strong dollar, easing rate-cut bets
- Chile central bank issues first gold purchase in decades
- BMI expects silver to average $93/oz in 2026
Gold prices fell more than 1 percent on Thursday, pressured by a stronger dollar and diminishing hopes for a reduction in borrowing costs as the ongoing Iran war stoked inflation concerns.
Spot gold dipped 1.1 percent at $5,118.16 per ounce by 1:31 p.m. ET (1731 GMT). US gold futures for April delivery settled 1 percent lower at $5,125.80.
The dollar gained for a third consecutive session. The greenback is a competitive safe-haven asset, and a stronger US currency makes gold more expensive for holders of other currencies.
“The higher dollar index, rising treasury yields and lack of interest-rate cuts are the negative factors, but the conflict in the Middle East has been generating some safe-haven flows,” said Phillip Streible, chief market strategist at Blue Line Futures.
Two tankers were ablaze in Iraqi waters in an apparent escalation in Iranian attacks that have cut off Middle East energy supplies. In reaction, oil prices rose sharply for the day.
Iran will avenge the blood of its martyrs, keep the Strait of Hormuz closed and attack US bases, new Supreme Leader Ayatollah Mojtaba Khamenei said.
Higher crude prices feed into inflation by raising transportation and production costs. Gold is considered an inflation hedge, but high interest rates weigh on it by making yield-bearing assets more attractive.
“If they can prevent oil prices from climbing further, gold should be in a good place... On the bullish side for gold, the main argument is that central bank buying and steady exchange-traded fund inflows, which have remained positive all year,” Streible added.
Chile’s central bank issued its first major gold purchase since at least 2000. In February, the bank boosted its gold reserves to $1.108 billion, up from $42 million in January, equivalent to 2.2 percent of total reserves.
Elsewhere, spot silver eased 1 percent to $84.90. Prices gained more than 146 percent last year.
Analysts at BMI wrote in a note they expect silver to average $93 per ounce in 2026, with strong investment demand consolidating the gains witnessed in 2025, and offsetting price-induced demand destruction in solar panels and jewelry.
Spot platinum lost 1.1 percent to $2,145.75, and palladium fell 1 percent to $1,620.86.
