Commodities Update 30

Commodities Update 30

02 February 2016

Important legal information


Since Russia is negotiating with the OPEC about production limits, the oil price increased. This could lead to an end of the current oil overproduction. According to Saxo Bank’s analysts Ole Hansen oil could increase up to USD 40 per barrel. Nevertheless Brent as well as WTI still seem weak and start the new week with a four percent decrease each. While WTI notes at USD 32.50, Brent closes at USD 35.00 on Monday.

Reuters announced that Iran enhanced its production volume to 250.00 barrel per day, while the oil production in the USA decreased down to 9.32 million barrel per day. The amount of drillings still decline and is on the lowest level since March 2010, according to Baker Hughes.

Despite China’s weak economy, gold increases in the new week close to USD 1.130 per troy ounce. Since the first days of the new year gold increased in total five percent. According to the US-mint as well as the Australian mint the demand of gold is increased, which can be protocolled in a 53 percent higher demand in gold coins in the USA. Also the demand of silver could grow in the beginning of the new year.

During the last weeks the sugar price is confronted with a price decline. The latest price collapse could be led back to Kingsman’s expectations, a sugar market analyst. They raised their prognoses for the sugar production for Brazil and adjusted the world’s deficit for 2015/16. So while Brazil could note increases in its sugar production, India is reducing its expectations for the ongoing year. According to India’s sugar association ISMA it may form a contra motion to the predicted sugar price decline.

 

 

16/04/2021 05:42:38