Commodities Update 56

Commodities Update 56

27 September 2016

Important legal information

At the 15th International Energy Forum (IEF15) meeting in Algeria which takes place this week, the possibility of an oil output freeze might sustain oil prices. However, the question is if it is likely that non-OPEC countries could agree on a possible output freeze with OPEC members. One of the consequences of a possible agreement may be the fact that an output freeze could lead to higher oil prices which may imply a higher profitability for shale oil producers. As a result, shale oil producers could be tempted to boost their production. However, the future development remain to be seen.

 

The demand for gold increased and was mainly driven by uncertainty reigning over financial markets. On Monday morning gold noted at USD 1.335 per ounce and reached USD 1.340 per ounce during the afternoon. Because of FED not hiking rates gold had the soared last week. According to recent data from Swiss customs, gold export to China are moderate.

 

For the third week in a row, copper prices increased. Risk-affine investors show confidence about the positive outlook for copper prices. Copper prices got sustained last weeks by the positive conjuncture in China and by the monetary policy of the Central Bank of China.

 

04/12/2020 22:00:47