Closing the session on November 3, oil prices were at their lowest in nearly 4 weeks, gold was at the lowest in nearly 3 weeks, copper, iron and steel, while natural gas and coking coal increased.
Oil price lowest in nearly 4 weeks
Oil prices fell to a near four-week low, after U.S. crude inventories rose more than expected, while gasoline inventories in the world’s biggest oil consumer hit a four-year low.
Closing the session on November 3, Brent crude oil fell $2.73, or 3.2%, to $81.99 a barrel and West Texas Intermediate crude fell $3.05, or 3.6%, to 80. 86 USD/barrel. This was the steepest drop for both grades since early August 2021, hitting the lowest for Brent since October 7, 2021 and WTI since October 13, 2021.
Oil prices fell as weekly US crude inventories rose by more than 3.3 million barrels, but gasoline inventories hit their lowest level since November 2017. Supply in the US oil market tightened, as inventories at storage centers in Cushing, Oklahoma hit a three-year low.
According to AAA, the recent average retail price of gasoline in the US reached 3.4 USD/gallon, an increase of 20 US cents compared to October 2021.
Natural gas prices up 2%
U.S. natural gas prices rose 2%, after rising 7% in the previous session on forecasts of stronger-than-expected heating demand this week and rising global gas prices, which should boost export demand. US liquefied natural gas (LNG) increased sharply.
The price of natural gas for December 2021 term on the New York Stock Exchange increased by 12.8 US cents, or 2.3%, to 5.67 USD/mmBtu.
Gold price lowest in nearly 3 weeks
Gold prices are at their lowest since mid-October 2021, after the US Federal Reserve announced cuts to pandemic-era stimulus measures.
Spot gold on the LBMA fell 0.9 percent to $1,770.61 an ounce, earlier in the session hitting its lowest since October 13, 2021 ($1,757.63 an ounce) and December gold futures. 2021 on the New York Stock Exchange fell 1.4% to $1,763.9 an ounce.
The Fed will begin cutting its monthly bond purchases in November 2021, with the plan ending in 2022 in a statement at the end of the two-day meeting.
Copper prices continue to fall
Copper prices fell, on uncertainty ahead of a meeting of the US Federal Reserve that is expected to begin cutting stimulus measures and concerns about a slowdown in China’s economic growth.
Three-month copper futures on the London Exchange fell 0.6 percent to $9,436 a tonne, abandoning previous gains and down nearly 10 percent from a five-month peak on October 18, 2021.
Meanwhile, copper for December 2021 on the Shanghai Exchange increased 2% to 71,350 CNY (11,151.23 USD)/ton, after 2 consecutive weeks of decline.
Copper production at Codelco Chile – the world’s largest copper mine in September 2021 decreased 16% compared to the same month last year.
Coking coal prices increased, iron ore and rebar fell
Coking coal prices in China rose – for the first time – in six trading sessions, up more than 14% amid tight supply, along with coking coal prices also increased.
On the Dalian bourse, the price of coking coal rose 12.7% to CNY 2,477/ton, in one session it increased 14.1% to CNY 2,507 (US$391.8)/ton, the biggest % change since the day. 11/22/2016. Coke prices rose 8% to CNY 3,215 a tonne, after rising 9.5% in early trading. Iron ore prices fell 0.4 percent to CNY 590 a tonne and spot prices of 62% Fe iron ore to China fell $5 to $102 a tonne, consulting firm SteelHome said.
The current price of coking coal is about 1,100 yuan ($171.9) a tonne higher than the January 2022 futures contract, while spot coking coal prices are several hundred yuan higher, Huatai Futures said.
On the Shanghai bourse, rebar price fell 0.1% to CNY 4,385/ton, hot rolled coil price increased 1.6% to CNY 4,782/ton. The price of stainless steel for December 2021 fell 0.9% to 18,565 CNY/ton.
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