Oil rose overnight as supply concerns and the Iran conflict continue to pressure prices.
Both Brent crude and West Texas Intermediate (WTI) rose by over 1%. Conversely, gold dropped 0.54% as inflationary concerns around energy continue.
It was a mixed session for industrial metals. Copper, tin, and aluminium edged higher, but lead and zinc were a touch down. Silver dropped nearly 1%.
Australian Securities Exchange (ASX) commodity investors remain exposed to potential earnings growth.
Yesterday, The Australian reported:
“Morgan Stanley strategist Chris Nicol frames this through earnings growth rather than valuation, noting resources earnings are forecast to grow 15.2 per cent in financial year 2027, more than double the 7.5 per cent expected for the ASX 200 overall and nearly treble the 5.4 per cent pencilled in for the banks.
“Morgan Stanley stays overweight materials against financials, even as volatility around the artificial intelligence build-out continues to whip resources prices around.”
The wildcard here is the oil price. The physical market remains very tight, and supply through the Strait of Hormuz may struggle to sustain its recent rebound, according to ANZ Group (ASX:ANZ) Senior Commodity Strategist Daniel Hynes.
Write to Callum Newman at Mining.com.au
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