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HomeLatest NewsGlobal NewsCommodity Snapshot: Drone Attacks Target Russian Refineries, Oil Prices Remain Stable.

Commodity Snapshot: Drone Attacks Target Russian Refineries, Oil Prices Remain Stable.

Commodity Snapshot

Oil prices rose on Thursday due to a drop in U.S. crude oil and gasoline stocks, and Ukraine’s attacks on Russian refineries.
U.S. gasoline futures slightly eased after the largest price increase across the energy complex.
The Organization of the Petroleum Exporting Countries, led by Saudi Arabia, maintained its forecast for oil demand growth of 2.25 million barrels per day in 2024 and raised its global economic growth forecast for this year, indicating more room for improvement.

Precious metals futures, including platinum, silver, and gold, fell against a stronger dollar as markets awaited U.S. producer price data and inflation trends ahead of the Federal Reserve meeting. Spot gold was down -0.20% at $2,169.98 an ounce. Saxo Bank warns of a correction, potentially taking gold down to support at $2,134 or potentially to the 0.382 retracement at $2,114. A daily close below $2,016 is necessary to negate the bullish picture.

India’s central bank has permitted gold imports without paying import levies, according to a government notification. Gold importers must pay customs duty and Agriculture Infrastructure and Development Cess. As of September 2023, the Reserve Bank of India held 800.79 metric tonnes of gold, including 39.89 tonnes of gold deposits.

Copper prices have fallen after reaching their highest in seven months due to Chinese plans to cut output. Analysts predict copper prices to increase in the second quarter, which is the strongest quarter of the year, to average $8,500/t. Meanwhile, iron ore prices are facing pressure from fundamental and sentiment factors in China, which are likely to persist over the short term. The price of Singapore Exchange iron ore contracts dropped to $110.05 a metric ton, the lowest close since August 31 and down 23.4% from the peak in 2024.

Stocks to watch: Flotek Industries (FTK) +30%, PBF Energy (PBF) +9%, Imperial Petroleum (IMPP) +8%, CVR Energy (CVI) +7%, ProFrac Holding (ACDC) -7%, Dawson Geophysical Company (DWSN) -7%, Cameco (CCJ) -6%, Liberty Energy (LBRT) -6%.

Recent Commodity Price Movements
Energy

Crude oil (CL1:COM) +0.70% to $80.28.

Natural Gas (NG1:COM) +0.78% to $1.67.

Metals

Palladium (XPDUSD:CUR) +0.33% to $1,063.00.

Platinum (XPTUSD:CUR) -0.51% to $933.21.

Copper (HG1:COM) -0.61% to $4.03.


Agriculture

Corn (C_1:COM) +0.08% to $441.59.

Wheat (W_1:COM) -1.02% to $538.72.

Cotton (CT1:COM) -0.11% to $94.80.

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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. Commodity Snapshot Commodity Snapshot Commodity Snapshot

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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