Crude and Iran ore weaker, metals and agri markets mixed – ANZ
By FXStreet FXStreet (Delhi) – Research Team at ANZ, presents the commodities market outlook.
Key Quotes
Crude oil prices were weaker amid rising US supply. EIA data suggest gasoline and distillate fuel stockpiles increased 10.6m bbl and 6.3m bbl, respectively, last week. The rise in gasoline and distillate inventory more than offset the fall in crude oil inventory levels by 5.09m bbl to 482.3m bbl last week. However, these large moves could be the result of seasonal issues and thus next week’s release will be key to the sustainability of this trend.
Base and precious metal prices were mixed. Gold continued to climb with rising safe-haven demand amid the rebound in market volatility. Rising equities losses and surprising devaluation of the yuan are painting a positive picture for gold. But even news of Chinese state authorities buying was not able to support copper prices. China’s state reserve bureau is seeking as much as 150kt of domestically produced refined copper amid a collapse in prices to six-year lows.
Iron ore markets were weaker. The slowing steel price rally has put the brakes on iron ore prices. The most active rebar (long steel) contract closed down 0.3% after rallying 18% from December lows. On the supply side, iron …read more
Source:: FX Street
