Market on December 14: Oil prices fell, gold, iron ore, rubber all increased

Market on December 14: Oil prices fell, gold, iron ore, rubber all increased

The trading session on December 14, the oil price fell due to the worry that the Omicrom mutation will reduce the demand for crude oil, gold increased slightly, copper decreased, iron ore prices in China increased sharply, rubber increased.

Oil drops due to Omicron mutation worries

Oil prices fell on worries that the world’s growing corona virus infections will reduce crude demand as new doubts arise about the effectiveness of a vaccine against the Omicron variant.

Closing session on December 13, Brent crude fell 76 US cents or 1% to $74.39 per barrel, while WTI crude fell 38 US cents or 0.5% to $71.29 per barrel.

According to the World Health Organization, the Omicron variant has been reported in more than 60 countries, with some evidence that it evades vaccine protection.

OPEC raised its forecast for world oil demand for the first quarter of 2022 but kept its growth forecast steady for the full year, saying the Omicron variant would be slightly impacted as the world gets used to dealing with the Covid-19 pandemic. 19. OPEC+ will meet on January 4, 2022 to decide on their output policy.

Iraq’s Oil Minister said on December 12 that he expected OPEC to maintain its policy of gradually increasing output by 400,000 barrels per day at the next meeting.

Saudi Arabia’s Energy Minister said the oil markets could face a “dangerous period” as slumping investment in exploration and production threatens to reduce oil production by about 30 million bpd next year. 2030.

Meanwhile, in the US, crude oil production from the Permian basin, the largest US shale oil area, is expected to reach a record high output in January 2022.

Gold rose slightly

Gold prices rose as the US Federal Reserve is likely to signal the pace of reduction in economic support measures during the pandemic.

Spot gold rose 0.2 percent to $1,786.19 an ounce. US gold futures for February 2022 closed up 0.2 percent at $1,788.3 an ounce.

In the short to medium term, the price of gold is uncertain until there are clues about the pace of the Fed’s stimulus reduction.

According to Commerzbank, gold prices may decline in the first half of 2022 as the interest rate hike cycle ends, forecasting gold prices at $1,900 an ounce by the end of 2022, $200 lower than the previous forecast of the bank. surname.

Copper falls as inventories grow and USD strengthens

Copper prices fell on growing inventories and a stronger dollar, but China’s pledge to invest in infrastructure next year capped the decline.

Three-month copper on the London Metal Exchange fell 0.7 percent to $9,442 a tonne.

LME copper reserves started to increase last week and have reached 84,450 tons. Fears about copper supply in the LME market are easing as the spot price versus 3-month futures contract narrows to near zero from $1,100 in mid-October.

A stronger dollar makes metals denominated in that currency more expensive for buyers in other currencies, which can reduce demand.

China, the top consumer of industrial metals, said it will implement new tax and fee cuts, invest in infrastructure next year and support sectors such as jobs, finance, trade and industry. trade and investment.

China iron ore prices rise

China’s iron ore prices jumped nearly 6% after two straight sessions of decline as the government’s pledge to focus on economic stability next year boosted the demand outlook.

Iron ore futures for May 2022 on the Dalian Commodity Exchange closed up 5% to CNY 669/ton after rising about 5.9% to CNY 674/ton during the session.

According to data from consulting firm SteelHome, spot iron ore with 62% Fe content exported to China decreased by 1 USD to 108 USD/ton on December 10.

Steel manufacturing components also increased. Coking coal closed up 1.7% at CNY 2,035 a tonne, after falling 5.9% in the early session. Dalian coke price increased 1.9% to 2,972 CNY/ton.

Bar steel in Shanghai rose 2.5% to CNY 4,415/ton and hot rolled coil increased 2.2% to CNY 4,535/ton.

Stainless steel in Shanghai for delivery in January 2022 increased 1.8% to 16,1610 CNY/ton.

Japanese rubber increases according to Shanghai prices

Japanese rubber prices rose more than 3% on the first day of the week in Shanghai terms due to new purchases and worries about the negative impact on demand by the recent Omicron mutation.

Rubber contract for May 2022 on the Osaka exchange closed up 7.7 JPY or 3.4% to 236.8 JPY (2.1 USD)/kg.

The price of rubber for delivery in May 2022 on the Shanghai Exchange increased by 280 JPY to 14,760 CNY (US$2,320)/ton.

Japan’s services sector improved to a two-year high but the recovery of manufacturers stalled, a sign of raw material costs, according to a closely watched central bank survey. Crude is rising putting pressure on the economic recovery from the pandemic.

T&G International Joint Stock Company

Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi

Hotline: 0345786803

Email: hrm@tginterjsc.com

Website: http://tginternationaljsc.com

Other news