​EBC Markets Briefing | Oil up amid geopolitical tensions; Intel backtracks

WTI oil prices were heading for weekly gains of close to 2% on Friday, supported by an expected Fed interest rate cut, escalating US-Venezuela tensions and stalled peace talks in Moscow.

Trump reiterated o that the US will start striking alleged drug cartels on land in Venezuela very soon. Military intervention could force the South American nation's oil production and exports to drop.

President Putin has warned again that Ukrainian troops must withdraw from the eastern Donbas region or Russia will seize it, rejecting any compromise over how to end the war in Europe.

Of economists surveyed in a recent Reuters poll, 82% expected a 25-bp interest rate reduction at next week's Fed policy meeting. But oversupply concerns are lingering, which could take hold again soon.

Saudi Aramco will reduce the price of its flagship Arab Light crude grade to the lowest level in five years, according to data from Bloomberg; the EIA said US crude inventories rose a second week despite a slump in imports.

China's total oil demand including all products is set to peak in 2027, with a rise of about 100,000 bpd this year driven by increased volumes from the petrochemicals sector, a state oil researcher said in September.

WTI crude remained under 50 SMA, but bullish MACD divergence suggested a potential increase. However, a push above $62.5 might be needed to reverse the downtrend that persisted for months.

Asset recap

As of market close on 4 December, among EBC products, Global X Uranium ETF led gains. The US, France and Japan have signalled a push toward tripling nuclear capacity by mid-century, demand for uranium has surged.

Intel shares pared some of its gains earlier in the week after reports indicated the chipmaker plans to hold onto its networking and communications unit following a strategic review.

Salesforce reported better-than-expected earnings and topped Wall Street estimates with its revenue guidance for Q4. The company has acquired several companies in its AI-driven expansion.

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