Action in commodities: energy higher – ANZ

By FXStreet Analysts at ANZ explained the action in the commodity sector.

Key Quotes:

“Energy was higher. Supply disruptions and closures helped push crude oil prices higher, despite the stronger USD.

While the wildfire in the oils and regions of Canada is still wreaking havoc with many producers, US oil output continues to feel the impact of low prices. EIA data show that production fell another 113,000 b/d to 8.83mb/d. This is the lowest level since November 2014.

Precious metals were lower. A slightly stronger USD outweighed growing expectations of a weaker jobs report, pushing gold prices lower. • Bulks were unchanged. The physical iron ore market held steady above USD60/t, although derivatives continued their downward trend. Iron ore exports from Australia’s Port Hedland terminal jumped 6.5% y/y in April as Chinese demand picked up. Shipments hit 37.7mt. Of this, 30.1mt went to China, up 8.3% y/y. Chinese steel prices remained weak, with rebar prices falling another RMB100/t yesterday.

Industrials were lower. Copper led the complex lower on persistent concerns that demand in China remains weak. The stronger USD also weighed on the sector. Weak prices continue to pressure the producers. Glencore has shut a furnace at its Koniambo smelter in New Caledonia, keeping …read more

Source:: FX Street