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HomeNewsGlobal NewsCommodity Snapshot: Natural Gas Gains Ground, Oil Prices Under Pressure.

Commodity Snapshot: Natural Gas Gains Ground, Oil Prices Under Pressure.

Commodity snapshot shows Natural gas futures rose to $1.76/MMBtu on Thursday, following a decline in the previous session. Oil futures fell for a fourth consecutive session. Weak demand remains a concern, but production cuts did not significantly alter supply/demand balance. U.S. utilities added 54 billion cubic feet of gas last week.

Kinder Morgan reaffirmed its annual profit outlook, predicting substantial growth in natural gas demand between now and 2030, despite a 35% drop in natural gas futures. The forecast comes amid increased LNG exports and Mexico exports.

TC Energy anticipates no service interruptions from a ruptured NGTL gas pipeline in Alberta, Canada, causing a wildfire. They are investigating, and once safe, will assess repair and restoration planning.

Oil prices continued to decline for a fourth consecutive session, with Brent Crude (CO1:COM) down -1.00% to $86.41/bbl.

The Energy Information Administration reported a 2.7M barrel increase in U.S. commercial crude inventories for the week ending April 12. JPM Commodities Research estimates global oil consumption in April averaged 101.0 mbd, against Bank’s 1.7 mbd increase.

Markets have interpreted a hawkish stance from Federal Reserve Chair Jerome Powell regarding U.S. rates.

Energy

Crude oil (CL1:COM) -1.06% to $81.81.
Natural Gas (NG1:COM) +2.87% to $1.76.

Metals

Palladium(XPDUSD:CUR) +0.14% to $1,037.00.
Platinum (XPTUSD:CUR) -0.12% to $952.60.
Gold (XAUUSD:CUR) +0.58% to $2,379.78.
Agriculture

Corn (C_1:COM) -0.10% to $429.82.
Wheat (W_1:COM) -2.22% to $539.97.

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Gold prices are expected to gain for the first time since October due to the US Federal Reserve’s anticipated interest rate cut in June. The Reserve Bank of India’s gold holding increased to 812.3 tonnes in January, from 803.58 tonnes in December 2023. However, Commerzbank sees limited upside potential due to the mystery surrounding the price increase. It is unlikely that gold prices will fall back to February levels, as the Fed is expected to cut interest rates in June.

Spot gold was trading -0.3% lower at $2,176.89 an ounce as markets awaited the release of U.S. CPI data, which could influence the Federal Reserve’s policy path. A hotter-than-expected reading could delay the central bank’s easing cycle. Low interest rates help bullion by reducing the opportunity cost of holding the zero-yielding asset. A mixed tone prevailed across commodity sectors, with China’s economic growth concerns affecting bulks and supply concerns supporting industrial metals.

Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.

Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.

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