Crude oil prices surge to two-week high amidst volatile trading conditions

Over the past two weeks, crude oil prices have experienced positive gains, propelling them to reach two-week highs in the international markets. While trading volumes have been slightly lower, the market movements have been characterized by exaggerated fluctuations. This can be attributed to the closure of the US and UK markets, resulting in no trading activities for the rest of the Monday in those regions.

However, one significant factor supporting the upward trend in various sectors, including metals and industrial commodities, is the US reaching its debt ceiling limit.

Speaking to CNBC-TV18 Peter McGuire, CEO of XM Australia, believes that there is potential for consolidation at current levels, with the possibility of another modest increase of one or two dollars.

McGuire said, “I think crude, no doubt was oversold, and it's had a nice bounce to the upside. And where it sits from here, may consolidate, you might see another dollar or two pushed up. We have seen a dramatic move on the two-year yield over this calendar month, it has been extraordinary and then you are thinking is this deal going to get through Congress as far as the debt ceiling. So I have plenty to talk about this week, and capped off of course with non-farm payrolls on Friday.”

McGuire expressed his belief that the recent lows in crude oil prices have likely been reached. He anticipates a potential upward jump from these levels, although the extreme volatility of the market makes it difficult to predict its trajectory.

McGuire finds the overall sentiment intriguing and looks forward to the events unfolding on June 4th, which he suggests could lead to fireworks in the market. With non-farm payrolls scheduled for release on Friday, he anticipates an eventful week ahead.

Meanwhile Copper prices dipped below $8,000 a tonne for the first time since November, due to weak Chinese demand and global economic concerns. Concerns over a worldwide economic slowdown and the strength of the dollar fueled metals sell-offs this week.

Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd said, “We expect copper to trade higher towards 721 levels, a break of which could prompt the price to move higher to 727 levels.”