Peter McGuire, CEO of XM Australia, expects Brent crude to reach $80 per barrel and WTI to potentially test $75. He highlighted that geopolitical risks, particularly Russia’s actions in Ukraine is a key driver of the rising oil prices.

Oil prices hovered near two-week highs on November 25 after gaining 6% last week, as escalating geopolitical tensions between western powers and major oil producers like Russia and Iran raised concerns over potential supply disruptions.

“I would expect that risk premium will probably build over the rest of this week. We’ll just have to wait and see if there’s any significant escalation in tensions between these parties. So December is going to be a very hot market for crude,” he said.

The past week was highly dynamic for crude oil markets, with strong performances from NYMEX and Brent by Friday night, although some gains were pared back during Asia’s morning trade.

McGuire anticipated that December would be particularly active for the crude oil market as geopolitical tensions continue to evolve.

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McGuire also expects gold prices to test all-time highs, driven by central bank buying and potential geopolitical escalations.

“I think there’s more upside for gold. Central Bank buying their appetite is incredibly strong, and we will test probably all time highs sometime in December. Keep a close eye again on US Dollar Index, what’s happening on ECB and the Fed in December, and if you see geopolitics ramp up, then that’s really going to put a solid boost onto gold,” he said.

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