On Tuesday, WTI crude futures surged past $85 per barrel, reaching a peak not seen since October, due to potential supply disruptions arising from Ukrainian attacks on Russian energy sites and heightened tensions in the Middle East.  

There was a deadly airstrike on the Iranian embassy in Damascus, attributed to Israel, claiming the lives of two high-ranking Iranian generals and five military advisors, with Iran vowing retaliation. In tandem, Mexico’s state-owned Pemex announced plans to cut back on crude exports in the following months, exacerbating existing worries over supply deficits.  

Meanwhile, OPEC is slated to review market conditions and assess member countries’ compliance with production quotas at the upcoming joint ministerial meeting, without any anticipated deviations from the current production strategies. Manufacturing PMI figures from the US and China, stronger than expected, have uplifted the outlook for a rebound in oil demand. 

(WTI Crude Yearly Chart) 

Soaring geopolitical tensions coupled with escalating demand from investment funds and central banks propelled gold prices to unprecedented heights, peaking at a staggering $2,270 per ounce, overshadowing the robust US dollar and the prospective persistence of elevated US interest rates. 

(Gold Price Yearly Chart) 

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