Commodity Snapshot shows Oil prices fell as OPEC+ extended output cuts into 2025, focusing on U.S. economic data. UBS expects Brent crude oil to rise to $91/bbl in the coming months, with larger inventory draws expected to support prices.
The investment bank suggests volatility in near-term prices due to different perceptions of OPEC+’s decision. JPM Commodities Research views the announcement as neutral for global crude oil balances and prices in 2024, with global oil demand expected to accelerate by 2.5 million barrels.
Brent oil is expected to move at least $10 higher by September, putting pressure on the US administration and potentially allowing the alliance to bring a small proportion of curbed production in October. European gas prices also saw significant gains due to supply shortages and heatwave forecasts.
Gold prices remained stable amid upcoming jobs data and Federal Reserve remarks, while a stronger US dollar maintained prices, marking a fourth consecutive month of gain.
Energy
Crude oil (CL1:COM) -0.29% to $76.76.
Natural Gas (NG1:COM) +5.02% to $2.72.
Metals
Palladium (XPDUSD:CUR) -1.00% to $894.50.
Platinum (XPTUSD:CUR) -1.02% to $1,033.60.
Gold (XAUUSD:CUR) -0.02% to $2,326.52.
Agriculture
Corn (C_1:COM) -0.35% to $444.70.
Wheat (W_1:COM) +1.01% to $685.36.
Soybeans (S_1:COM) -0.74% to $1,195.78.
Must read book about investing – check here Commodity Snapshot Commodity Snapshot Commodity SnapshotCommodity Snapshot European natural gas futures reached a two-week high of €31/MWh Commodity Snapshotdue to geopolitical tensions and supply disruption fears. Gas-fired power generation remains more profitable for utilities than coal-fired power.
European natural gas futures reached a two-week high of €31/MWh due to geopolitical tensions and supply disruption fears. Gas-fired power generation remains more profitable for utilities than coal-fired power.
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.