Thursday, 9 February 2017

What’s next? – GOLD, OIL 09.02.17

Posted by Fort Financial Services at 11:07 Labels:

GOLD
Gold and copper prices rose in Asian hours on Thursday as miners have started a strike in Chile that could disrupt supply, while political risks continued to support growth.
On the Comex division of the New York Mercantile Exchange, gold for April delivery rose 0.14 percent to trade at $1,241.20 an ounce as of 07:05 GMT.
The Escondida copper mine in Chile is considered to be the world's largest and it’s now facing a potential output disruption as workers have agreed on a strike on Thursday. Australia’s BHP mining company warned it couldn’t guarantee the safety of the workers performing equipment upkeep and adherence to environmental protocols. Chilean is the world’s largest producer of copper, accounting for a third of global production.
Meanwhile, the yellow metal advanced for a fifth consecutive day on Wednesday, extending gains amid increasing political concerns in Europe and uncertainty in the United States.
Investors’ focus has shifted towards the French presidential elections. According to polls, far-right Marine Le Pen is on top, followed by centrist candidate Emmanuel Macron and conservative Francois Fillon. The National Front leader has expressed her desire to leave the eurozone and promised to hold a referendum on EU membership. The first round of the elections is due on April 23, with a definitive scheduled on May 7.
In the US, traders continued to pay close attention to Donald Trump’s measures. US equity markets speculate on higher fiscal spending, tax reforms and deregulation.
OIL
Crude oil prices moved higher in Asian session on Thursday as market players remained optimistic about supply reductions despite growing US shale oil production.
US West Texas Intermediate oil futures traded at $52.60 a barrel on the New York Mercantile Exchange, up 0.50 percent from its previous settlement. The London-based Brent crude oil futures surged 0.54 percent to $55.42 a barrel as of 07:05 GMT.
On Wednesday, oil prices moved higher after the Energy Information Administration reported a massive build in US crude oil stockpiles for a third consecutive week. Traders believe US drillers are rapidly increasing their output levels to counteract OPEC’s output cuts.
According to the EIA report, US crude inventories rose by 13.83 million barrels for the week ended February 3, well above the expected 2.8 million barrels build. A day earlier, the American Petroleum Association anticipated a 14.23 million barrels gain in stocks.
Meanwhile, OPEC and non-OPEC produces continue to work to reduce nearly 1.8 million barrels per day from global production in the first six months of 2016.
Later in the day, the International Energy Agency will release its monthly supply and demand estimates. On Friday, Baker Hughes will publish the number of oil rigs operating in the US. The last report showed 17 rigs build, leaving the total at 583, the highest level since November 2015.


No comments :

Post a Comment

Subscribe to: Post Comments ( Atom )