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China's plan to stimulate its economy sent oil prices (CL=F, BZ=F) jumping on Tuesday. Concerns about the economic slowdown in China has been one of the drags on prices this year.
Yahoo Finance Senior Reporter Ines Ferré breaks down the action in the oil market and metal prices, which are also getting a boost.
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This post was written by Stephanie Mikulich.
Over in the commodity space, oil climbing is traders digest China's biggest stimulus package since the early days of the pandemic. Yahoo Financesz Frey joins us now with a closer look, Inez.
Yeah, Josh. And if we take a look at WTI and Brent today, up almost 2%. In fact, this bump that we saw today for US crude has put crude into positive territory year to date. And we are seeing Brent crude also higher. All of this really because of that China stimulus package that you just mentioned. I was talking to one analyst that was saying, it's because of that, because all year long, we have been really talking about lower demand from China, China. And so it's basically saying, the fact that you have this stimulus has really bumped up the price of crude. You also do have geopolitical tensions that has kept crude volatile over the last several weeks. But still, nevertheless, it's mostly China. I do want to note that Brent is now above $75 per barrel. This is around the range that some Wall Street analysts have been looking at for the fourth quarter of this year. We will have to see where it goes from here though, because last week we saw oil jumping up more than 4%. We'll see where it goes in the fourth quarter because we do have OPEC Plus that is scheduled to bring some barrels back into the market starting in December. We'll see if they follow through with that or not, guys.
And it's not just in the in the oil energy complex, right? We're seeing it in commodities like metals that are higher today.
Hugely, because we are looking at metals being industrial metals that are that are higher. Of course, you have the usual plays of the gold with highs. Silver seeing big highs today, up more than 4%. Remember that silver is also used as an industrial metal too. You have to really go back more than 10 years, look around 2012 to see the same type of level that we're looking at for silver futures, up above $32 per ounce. And then we're also taking a look at copper that is up as well today. But look, copper had been on an upward trend. I'm just going to pull up a two-month chart here or maybe a three-month chart so you can see. We have seen some deflationary pressures when it comes to copper and some of the other metals. And then we started seeing it bump a little higher and we have been seeing it up. In fact, copper up about 10 days now straight in a row. Same situation that you're looking at for some of the other industrial metals as well. And I do want to point out that some of the big performers today as well have been the miners. So the miners have been uh seeing some gains today along with the medals, guys.
Inez, thank you so much. Appreciate it.
