EBC Markets Briefing | Oil opens 2026 higher; silver prices volatile

Stocks began 2026 on a positive note in as investors braced for a year set to test the AI-led rally. Markets in Japan and China were closed while others returned from the New Year festivities.

Oil prices edged up after last year posting their biggest annual loss since 2020, as Ukrainian drones targeted Russian oil facilities and a US blockade pressured Venezuela's exports.

The Brent and WTI benchmarks recorded annual losses of nearly 20% last year, the steepest since 2020, as concerns about oversupply and tariffs outweighed geopolitical risks.

Zelensky said on Thursday that Russia targeted energy infrastructure with over 200 drones in the latest strike on New Year's Eve. The reports coincide with intensive talks aimed at ceasefire.

Venezuelan security forces have detained at least five Americans in recent months as the US has built a pressure campaign against Maduro, according to New York Times.

In the US, oil production hit a record high of 13.87 million bpd in October, according to the EIA. Crude stocks fell while gasoline and distillate inventories rose last week on robust refining activity.

Brent crude bottomed out in mid-December, forming a triple bottom pattern. The price will likely steady for a short while before testing the 50 SMA.

Asset recap

As of market close on 31 December, among EBC products, iShares India 50 ETF led gains. Record foreign selling capped the rise in India's share market in 2025 which scaled fresh high.

The NASDAQ 100 index ended 2025 on a down note, but it rode AI enthusiasm to a remarkable annual advance. Alphabet was the big winner among the megacaps, up 65.4% year to date.

CME Group hiked the margins on precious metal futures for the second time in the space of a week. Silver has seen huge price swings as it blew through levels that until recently seemed unthinkable.

EBC Financial Group Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Global Financial Collaboration or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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