Commodities update 67

Commodities update 67

20. tammikuuta 2017
Oil

After a weak performance last week, the oil price continued to drop on Monday. Brent trades now close to USD 55 and WTI around USD 52. Experts from Commerzbank estimate that the announced OPEC cut in oil production is accomplished by 70 percent. However, following various statements from members such as Iraq who seem not to be very reliable concerning reductions, the prices may drop even further going forward.

Gold

On Monday, Gold trades at a price of USD 1,120 and notes a 8-week high per ounce. The rise may be linked to global uncertainty regarding the future economic policies of the elected 45th US-president Donald Trump. The World Gold Council (WCG) published several reasons which could lead to a rise in demand for gold, e.g. higher risks caused by geopolitical and political crises, possible currency devaluations and higher inflation expectations. However the future development remains to be seen.

Nickel

Furthermore, Indonesia announced an easing of the export ban of Nickel. Before the ban was established, Indonesia was the largest Nickel supplier to China, exporting 65 million Tons. The event may change the expectations for an excess demand of Nickel this year. After the announcement, the price of Nickel dropped by 6 percent.
25.1.2020 6:08:08