ALBAWABA – United States (US) Treasuries slipped on higher yields as the US Dollar picked up and oil prices steadied after rising marginally on Tuesday ahead of the anticipated genocide in Gaza, news agencies reported.
Markets are also looking out for de-sanctioned Venezuelan oil supplies to offset cuts from Saudi Arabia and Russia, amid turmoil in the Middle East, according to Bloomberg.
The US is expected to loosen the noose on the South American country as the current Venezuelan leadership and opposition are slated to resume talks later today, Tuesday.
Brent crude futures were up $0.29 to $89.94 a barrel, while US West Texas Intermediate crude (WTI) was up $0.20 to $86.86 a barrel as of 0808 GMT, as reported by Reuters.
The US has been seeking ways to boost supplies and alleviate high oil prices, but any significant oil output increase by Venezuela will take time due to a lack of recent investments.
The flow of de-sanctioned Venezuelan supplies will relieve the market and possibly lower oil prices - Shutterstock
Both oil benchmarks surged last week on fears the conflict in Palestine’s Gaza could spiral into a regional war. Oil prices soared and the global benchmark Brent gained 7.5 percent, marking its highest weekly gain since February.
Earlier Tuesday, the US Dollar fluctuated in a tight range as traders held for speeches this week by central bank officials, including Federal Reserve Chair Powell, to gauge policy outlook, according to Reuters.
Meanwhile, yields on the US 10-year benchmark Treasury climbed over 4.7 percent, while 30-year bills rose more than five basis points, Bloomberg reported, as the selloff steepened the yield curve further.
A stronger dollar signals rising risks, mostly stemming from the tinderbox situation in Palestine and the region. Investors seek safe havens, such as gold, treasuries and government bonds for surer but lower profits in times of uncertainty.
