Oil prices continued to fall at the end of the session on December 1 due to fears that the Omicron virus would reduce oil demand when the US had the first case of infection. However, other commodities recovered as investors calmed down after the previous panic session.
Oil drops
Crude oil prices continued to fall in the past session on strong selling activity on concern that the Omicron variant virus could reduce demand amid increasing global supply.
The oil market entered the December 1 session with a strong recovery in a state of many uncertainties, then quickly turned down because investors sold off after the news that the Omicron variant virus was found in the US.
“When the market gets the news about Frankenstein variants, you sell first and find out later,” said John Kilduff, founder of Again Capital in New York.
Ending the last session, the price of US West Texas Intermediate (WTI) oil fell 61 US cents, or 6.9%, to 65.57 USD/barrel, before that, in the same session, the price increased by 4%; Brent oil also fell 36 US cents at the close, or 0.5%, to 68.87 USD/barrel.
Oil futures prices have been under downward pressure for weeks now due to factors ranging from the new variant of the Covid-19 virus to the US decision to release its emergency strategic oil reserve along with many other countries.
Gold bounced up as USD fell
Gold prices rose in the past session as the dollar fell, prompting investors to take advantage of the previous session’s decline in prices to buy gold bars as a hedge against major market fluctuations amid concerns about the price of gold. influence of Omicron variation.
At the end of the session, spot gold price increased by 0.4% to 1,780.05 USD/ounce; December gold futures also rose 0.4 percent to $1,784.30.
Phillip Streible, chief market strategist at Blue Line Futures in Chicago, said concerns about the virus variant are supporting gold as new restrictions will slow growth in the global economy. Demand, coupled with a weaker dollar, also boosted demand for the safe-haven metal.
The dong fell
Copper prices rose at the start of the session, but fell later in the session as the world’s largest copper producer Codelco warned of price drops and a surplus, stoking worries about weak demand from top Chinese consumers. Country.
Three-month copper futures on the London Stock Exchange fell 0.3 percent to close at $9,416 a tonne, having previously hit $9,600 as investors eased concerns about the effects of the virus. Omicron bodies.
Grains rebound as Omicron virus concerns ease
US wheat prices rose in the past session, making up for what was lost in the previous session, as investors were less concerned about the possibility that the Omicon virus could derail global economic growth.
Maize and soybean prices also recovered on expectations of an increase in exports.
U.S. wheat prices on the Chicago Mercantile Exchange ended up 3-1/4 cents to $7.90-1/2/bushel, corn prices also increased 4 cents to $5.71-1/2/bushel, while corn prices also increased by 4 cents to $5.71-1/2/bushel. soybeans increased 11 US cents to 12.28-1/4 USD/bushel, while soybeans for delivery in January 2022 increased 7.30 USD to 349.10 USD/ton.
Traders said the grain market has been quite volatile in recent days, particularly in wheat futures.
Wheat was seen as vulnerable to liquidation after hedge funds increased their long positions last month as the price of the crop surged to a nine-year high on the Chicago Mercantile Exchange and an all-time high on Euronext. Europe.
Coal rose sharply
Coal prices in China rose more than 5% in the past session due to supply concerns when coal imports from Mongolia were disrupted by the Covid-19 outbreak following the appearance of the Omicron variant.
Coking coal prices on the Dalian bourse this session increased by 5.3% to 1,962 yuan ($308.38) per tonne in the morning session of December 1, ending the session at 1,951 yuan per tonne. , up 4.6% compared to the previous session’s closing. Coke prices also followed, rising 4.7% to 2,780 yuan a tonne at the close, after rising 5% earlier the same day.
Iron and steel increase
Iron ore futures for January delivery on the Dalian exchange rose 2.4% to 629 yuan/ton; 62% Fe iron ore imports into China rose $0.50 to $105.5 on Tuesday. The price of rebar this session jumped 2.3% to 4,238 yuan/ton; Hot rolled coil increased 1.8% to 4,648 yuan/ton and stainless steel increased 0.2% to 17,045 yuan/mt.
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