​EBC Markets Briefing | Oil up on US-Venezuela tensions; silver hit record peak

Oil extended is gains on Thursday after the US seized a sanctioned oil tanker off Venezuela's coast, escalating tensions between the two countries and raising concern over further supply disruptions.

Traders said Asian buyers are demanding steep discounts on Venezuelan crude, pressured by a surge of sanctioned oil from Russia and Iran and heightened loading risks in South America.

Two US fighter jets were tracked circling the Gulf of Venezuela on Tuesday. Satellite images also show that an airbase in Puerto Rico, which was closed in 2004 by the Pentagon, has been re-activated.

Venezuela is likely to retain its seat in OPEC even if Trump successfully breaks Maduro's hold of the nation, as a disorderly transition would delay revival of oil production.

The world's biggest economies are not thirst. US crude inventories fell less than expected, while gasoline and distillates stockpiles rose last week amid strong refining activity, the EIA said.

China's robust stockpiling of crude is expected to continue next year, helping to cushion global markets from a swelling surplus, but masking a broader trend of slowing oil demand growth.

Brent crude remained under 50 SMA, but bullish MACD divergence pointed to a forthcoming rally. A break above $64 would be followed by another leg higher.

Asset recap

As of market close on 10 December, among EBC products, Caterpillar shares led gains. The company beat estimates with modest margin pressure due to higher tariffs and production costs.

The fight to buy Warner Bros Discovery is shaping up to be a blockbuster. Netflix's proposal includes Warner Bros' studio and streaming networks, leaving the rest of the company to be spun off as an independent company.

Silver hit a record high over $60, as the white metal largely outperformed gold amid signs of tightening supplies and more attractive valuations. The price has more than doubled this year.

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