Commodities Update 16

Commodities Update 16

den 14 oktober 2015

Important legal information

Brent Crude oil rose to 54 USD last week, the highest level since the end of August. WTI also reached a three-month high. Both increased about 9% during last week, but weakened at the beginning of this week. If sanctions on Iran get lifted, Iranian oil could return to the markets. The International Energy Agency, IEA, said that this, in connection with the lower forecast in oil demand growth, would keep the markets oversupplied in 2016. But especially the forecast of future oil demand is very uncertain, as the development of China is hard to predict. The IEA does not expect OPEC to adjust its outputs next year, even though Iran’s return might be contributing to a lasting oversupply.

The Federal Reserve’s concerns about low inflation and economic problems in China, that were raised after the September meeting, might hint to a shift of an interest rate increase to 2016. In consequence gold prices climbed to their highest level since seven weeks. A weaker Dollar also supported the gold prices.

Platinum prices decreased strongly at the beginning of October due to the VW-Scandal, as Platinum is used in larger amounts in the production of diesel engines than in the production of gas engines. It hit the lowest level since the financial crisis. The demand for precious metals increased generally, due to a rising demand by private investors. This allowed Platinum prices to recover and exceed 1000 USD on Monday, the first time since four weeks.



2020-12-04 22:21:00