Commodities Update 18

Commodities Update 18

27 October 2015

Important legal information

At the end of August WTI decreased to a low of 38 USD / barrel. Since then, there has been a rapid recovery up to 50 USD / barrel in the midth of October. Now it seems that a downwards trend is dominating again. At the beginning of this week, WTI lost 1.35 percent, while Brent lost 1.00 percent.
The market is still extremely oversupplied. Crude Oil Stocks in China are at their highest level since eight months. Due to the oversupply the USA continued to close active oil drillings. There are only 594 active oil drillings left, the lowest number since five years.

Though China surprisingly decreased key interested rate, there was no upswing in gold prices. They reached a 10-days-low last Thursday of 20 USD. A reason could be the stronger US-Dollar that resulted of the newest decision by the European Central Bank. If the Fed would indicate to raise interest rates, against expectations, this year, gold prices could be pressured.

Since a couple of months there is a sidewards movement in cocoa prices. Whether prices will rise, strongly depends on the development of the weather-condition El Niño. Especially Ghana is suffering from the drought. Rainfall is 70% lower than average, hence their cocoa production decreased by 115,000 barrels. The International Cocoa Organization expects a further decline by 20 percent. Ghana and the Ivory coast produce nearly 60 percent of global cocoa.



07/12/2022 19:00:28