Fed Chair Janet Yellen became a friend to the commodity markets as she was just dovish enough to inspire a rally. Her comment yesterday that central bankers will “proceed cautiously” in raising interest rates because the global economy presents heightened risks was enough to get the complex going. After Yellen spoke, the dollar fell, the euro rose and commodities like gold and silver started to rise. Crude oil, of course, was a little reluctant because of fears of the ongoing oil glut, but the American Petroleum Institute (API) supply report was not as bad as feared.
A deal among some OPEC producers and Russia to freeze production is perhaps "meaningless" as Saudi Arabia is the only country with the ability to increase output, a senior executive from the International Energy Agency said on Wednesday.
A terror attack in Brussels may slow momentum for crude oil as there could be a backlash on the demand side. As details are filtering in about another terror attack, crude oil traders may pull back if they fear that this incident with cause a drop in demand.
European shares followed Asian stocks higher on Monday, adding to gains chalked up after last week's stimulus package from the European Central Bank, while oil prices fell as Iran dashed prospects of a quick deal to freeze output.
Two Chinese firms are pushing for multi-billion dollar deals with Iran to build a high-speed railway and modernize its shipping fleet following the lifting of most sanctions against Tehran, sources with knowledge of the negotiations said.