Commodity update 63

Commodity update 63

9. joulukuuta 2016

Important legal information

At the beginning of the week, the prices for WTI and Brent dropped again after a double digit increase during the last week. Nevertheless, after this short recession, the prices recovered and in the following Brent reached USD 55.30 per barrel which marks a 16 month high. Simultaneously, WTI arrived at a 16 ½ month high by a price of USD 52.40 per barrel. This development might be triggered by the surprising agreement of the OPEC meeting last week. The members concluded a reduction in the oil production about 1.2 bio barrel per month.

Gold was only shortly affected by the result of the Italian referendum. Initially, gold as a “safe haven” grew to USD 1.190 per ounce and just declined back to USD 1,160.70 per ounce (ten month low). Meanwhile, the markets seem to have absorbed the uncertainty and risk aversion. This recovery might be connected with the hope, that no reelections will be announced for January.

After passing the psychological important mark of USD 5,000 per ton , follow up buys pushed copper up to USD 6,000 per ton. The International Copper Study Group (ICSG) expects a balanced market for 2016 and a slightly over supply for 2017. However the future development remains to be seen.

 

21.7.2019 8:44:54