Commodity market for raw materials ended the session on October 20 with the recovery of oil prices and a strong increase in gold; industrial metals such as copper, steel rose
Oil recovers as US inventories fall
Oil prices rose on Monday as data showed US crude inventories hit a three-year low and fuel inventories across the country fell sharply, signaling increased demand.
Ending the session, the price of Brent crude rose 0.9 percent, or 74 US cents, to $85.82 a barrel, the highest since October 2018. US West Texas Intermediate (WTI) oil for November term, due on November 20, increased 91 US cents (1.1%) to 83.87 USD/barrel; December WTI oil futures – currently the most traded – rose 98 cents to $83.42 a barrel.
Globally, refineries have been increasing production thanks to high profit margins. The industry’s profit margin is now constrained only by maintenance. U.S. refinery capacity utilization rates fell in the most recent week, but analysts note that supply could continue to tighten if U.S. refineries also begin to ramp up operations again. .
The U.S. Energy Information Administration said crude inventories fell by 431,000 barrels in recent weeks, contrary to expectations for a rise, and gasoline stocks fell by more than 5 million barrels as refineries cut processing capacity. variable due to maintenance. Inventories at the Cushing, Oklahoma delivery hub have hit their lowest level since October 2018.
Gold soars on weak USD
Gold prices rose sharply due to increasing fears of inflation and supply chain problems, attracting investors to the safe-haven asset.
Spot gold at the end of the session rose 0.9 percent to $1,785.25 an ounce. Similarly, December gold futures rose 0.8 percent to $1,784.90 an ounce.
“There’s concern globally about what’s going on, given the supply drawdown and lack of action from the US Federal Reserve,” said Bob Haberkorn, senior market strategist at RJO Futures. “.
Mr. Haberkorn added: “With supply chain issues and inflation, how do stocks continue to hit new highs? Over the next few months there will be a movement of money to the safe place of gold.”
Fed Governor Christopher Waller said on Tuesday that if inflation continues to rise at its current rate over the next several months, policymakers may need to adopt “another response.” more active policy” in the coming year.
Copper soars on low reserves
Copper prices rose in the past session on the back of a weak dollar and concerns that the global power crisis could affect the amount of copper stored – which is already very small.
At the end of the session, the reference copper futures price on the London floor increased 0.5% to $ 10,193 / ton, in one session the price dropped to $ 9,908.50 after the Chinese policymaking agency said it was trading. seeking to cool coal prices from record highs.
Copper inventories on the London Metal Exchange (LME) last week fell to their lowest level since 1998, at 17,875 tonnes, then inched up by 2,650 tonnes, but remained the lowest in more than a decade. The amount of copper in storage on ShFE is also at the lowest level since 2009 at 41,668 tons.
Coal reduced
Coal prices in China fell to the limit of the exchange floor after the Government of this country announced its intervention in the coal market. At the end of the session on October 20, coal price recovered slightly compared to the previous session, but still decreased compared to the previous session.
The price of coking coal on the Dalian bourse, after falling 9% at the beginning of the session ended at 3,442 CNY ($538.58)/ton, and coking coal ended the session also down at CNY 4,039/ton.
Coke and coke prices have fallen 89% and 70% respectively since the end of June.
Thermal coal futures prices on the Zhengzhou Commodity Exchange in the past session also turned down.
China’s National Development and Reform Commission on October 19 said it would bring coal prices back to a reasonable level and deal with any irregularities that disturb market order or thermal coal heads with the aim of bad.
Iron up, steel down
Iron ore price on Dalian ended the session up 0.5% to 710 CNY / ton, imported iron ore with 62% content was steady at 123 USD / ton.
Meanwhile, the price of steel on the Shanghai floor decreased. Rebar fell 2.9% to 5,304 CNY/ton at the close, hot rolled coil ended the session down 2.5% to CNY 5,550/ton.
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