Commodities Update 46

Commodities Update 46

den 22 juni 2016

Important legal information

At the beginning of the week, WTI rose by 1.8 percent to USD 49,60 and Brent jumped by more than 3 percent in a turbulent market environment, because of the assassination of pro-EU MP Jo Cox on last Thursday. Moreover, production’s issues in Nigeria, Libya and Venezuela supported the price. Despite a possible decrease by 240.000 barrel of Norway’s output due to maintenance works on several oil plants, Norway’s production is expected to be almost identical to the four year high of 2015. According to Saxo’s Bank Commodities analysts, Oil prices could stabilize between USD 45 and USD 50 per barrel in the next months. .

Gold dropped on Monday by USD 20 to USD 1,278. Some days before, gold reached a 2 year high at USD 1,315 per ounce supported by FED’s decision to not raise the rates. Actually the main driver for gold prices is the uncertainty of Thursday’s referendum, which could see UK leave the European Union. However to be really attractive among investors, gold has to break the psychological level of USD 1,300 per ounce.

Because of a growing risk appetite among Investors, industry metal raised on Monday. Zinc reached USD 2,000 per tonne , Nickel noted at USD 9,200 per tonne and Copper noted at about USD 4,550 per tonne. Last week Copper price was driven up by China’s decision to boost metals reserves, which may reduce the actual surplus on the market. However, the copper price notes actually barely over the 6 year low of January 2016. According to Société Générale’s analysts, the market could remain oversupplied in 2016 but the future development remains to be seen.

 

 

2019-07-20 22:32:57