Commodities Update 48

Commodities Update 48

07 July 2016

Important legal information

At the beginning of the week Brent noted around USD 50.50 and WTI was USD 49.10 per barrel. This weekend several oil infrastructure were attacked by rebels in the Niger delta region. Since friday some oil production plants were disrupted due to the Niger Delta Avengers. These attacks have helped support oil prices around USD 50. Nigeria is Africa's biggest economy and is highly oil and gas dependent. These attacks has driven Nigeria`s output lower. However, a barrel cruising around USD 50 make the shale oil production sustainable and could easily offset the volatile production of Nigeria. According to Saudi Arabia's oil minister, the global oil market is actually reaching an equilibrium between offer and demand.

The global uncertainty on the market due to the brexit referendum soared precious metal prices. Gold reached on Monday a two year high at USD 1,357 per ounce. Silver had an even stronger development by increasing 18 percent in June reaching an two year high beyond USD 21 per ounce. The Gold/Silver ratio dropped to an almost 2 year low at 64. Another factor for precious metals price increase are growing ETF-inflows: In June gold-ETF inflows were 109,6 tonnes and a nearly record high of 137,3 tonnes for silver-ETF.

Platinum and Palladium could have potential: Platinum prices gained 4,3 percent beyond USD 1,000 per ounce in June and Palladium increased by 9,1 percent at almost USD 600 per ounce. According to a study of BNP Paribas, Investors may expect a positive development because of an offer deficit in these two metals. However, the future development remains to be seen.



02/10/2022 18:42:06