Oil taps keep flowing – ANZ

By FXStreet FXStreet (Guatemala) – Analysts at ANZ noted the key events in the commodities sector to date.

Key Quotes:

“Crude oil prices were weaker on Friday and also down over the week. Baker Hughes reported that the US oil rig count climbed by 17 to 541. The increase in rig count even in a low crude oil price environment suggests shale producers are committed to maintaining production levels. The resilient production data reflect rising US crude stockpiles, which have surged to 491m barrels, the most for this time of year since 1930.

Base and precious metal prices were volatile, with initial weakness followed by some strength on Friday. We believe the pace of US rate hikes will decide the fate of gold. In other markets, the SHFE copper position rose by 9,205t to 179,612t over the past week. The open arbitrage position between LME and SHFE continues to provide benefits for importers.

Iron ore markets were stronger. Seaborne iron ore registered some gains on Friday as rising steel spot and futures prices lifted sentiment. On the flip side, slowing Chinese demand is reflected in rising Chinese port stocks. Iron ore inventories at China’s ports totalled 92.35mt as of Friday, up 1.9mt week-on-week.

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Source:: FX Street