Oil prices delivered top gains in the commodity markets on Wednesday as it surged 2% in the day’s trade. Brent futures rose by $1.35 with a 1.6% spike touching $85.08 a barrel. On the other hand, the West Texas Intermediate (WTI) crude rose by $2.09 with a 2.6% surge and settled at the price range of $82.85.
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Besides oil prices, even gold and the US dollar performed fairly better in the indices. Gold prices climbed above the $2,450 mark and remain on the greener side of the spectrum. The US dollar performed better on Wednesday by surging 0.03% in the day’s trade. However, overall its price dipped to 103.76 this month falling from a high of 105.50.
A weaker US dollar helped oil prices to surge making it the top contender for profits in the commodity market. Gold, silver, copper, and the US dollar fell behind oil prices this week. A bullish oil price could remove the sheen of other commodities and become a top profit generator this year.
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Oil Prices Peak in July 2024
Oil prices have turned bullish this week as the US dollar is weakening in the charts. Even the Japanese yen and the Chinese yuan faired slightly better than the US dollar this week. The Japanese yen hit a one-year high after falling to multi-decade lows this year. However, reports are doing the rounds that the yen’s rise against the dollar occurred after an intervention from their central bank.
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“The fact that the move is bigger than it is elsewhere seems like it points to intervention of some sort. But the timing doesn’t really make sense. It seems to be coming out of the blue as opposed to triggered by a move in volatility or a move in the spot rate,” said Karl Schamotta, Chief Market Strategist at Corpay in Canada, Toronto.