Commodity update 84

26 July 2017

 

Worries about OPEC-Deal pressure Oil prices

After Saudi Arabia, UAE and Nigeria exceeded the agreed output set by OPEC last week, Oil prices were pressured by the extra-supply. However, there is also a higher demand for Oil. According to the Energy Information Administration (EIA), inventories of Oil and gas dropped in the USA by 4.7 million and 4.4 million, respectively. Besides USA, China had positive influence on the Oil price due to higher demand last week. China reported an increase of 2.3 percent of crude oil processing compared to last month.

Gold accelerates

A weak Dollar helped the Gold price to accelerate last week. This is due to tensions in the White House and the failed attempts to reform health care in the US. In addition, ECB-President Mario Draghi presented the prospect of an adaption of the European interest rate policy. In the US, lowered expectations for increases in interest rate policy further consolidated the Gold price.

Production of Aluminium could increase to record high

Worries about an extension of the production of Aluminium pressured the price of the precious metal last week. Analysts of Commerzbank expect that worldwide production of Aluminium will exceed the mark of 60 million tons in 2017 and thus reach a new all-time record high. Especially China contributed 97.7 tons per day, an increase of 12.8 percent compared to previous year.

 

 

Vontobel products are tradable at your bank or online broker.

 

 

This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

For detailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: http://certificates.vontobel.com. Additionally, the Base Prospectus, any supplements to the Base Prospectus and the Final Terms are available in printed form, free of charge, at the registered office of the issuer: Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany.

Investors should consider the applicable selling restrictions.

Companies of the Vontobel group may directly or indirectly pay commissions in varying amounts to third parties (e.g. brokers) in connection with the public offer and the distribution of the derivative financial instruments. Further information is available upon request from your distribution partner.

Without permission, this product advertisement may not be reproduced or redistributed.

03/10/2022 06:11:12