![]() China’s gold imports jumped to a four-year high in August. In precious metals, the latest data from World Gold Council shows gold prices in Shanghai trading at a premium of more than US$43/oz (highest since 2019) over their London equivalent due to strong demand for the metal in the Chinese market. ![]() Earlier this week, data from China showed domestic output sliding more than 5% on the year. LME on-warrant copper stockpiles rose to the highest level since 11 July. The decline was driven by port Klang, Malaysia warehouses, aggravating supply tightness in the zinc market. Zinc inventories held in London Metal Exchange warehouses fell by 3,650 tonnes to the lowest since February 2020, while prices rebounded from their lowest in almost two months. The build was also significantly larger than the 5-year average of 81 bcf. The latest data shows that storage increased by 103bcf last week, whilst the market was expecting a number closer to around 95bcf. This weakness came after the EIA reported that US natural gas storage increased by more than expected over the week. US natural gas prices came under pressure yesterday, falling almost 9%. However, like most regions, gasoil stocks are still very tight for this stage of the year and are at their lowest levels since at least 2007 for this time of year. Fuel oil and gasoline stocks fell by 40kt and 20kt respectively, whilst gasoil inventories increased by 30kt over the week. As for Europe, refined product stocks in the ARA region increased by 15kt to 5.34mt. Light and middle distillates both saw small declines over the course of the week. The increase was driven fully by residues, with them increasing by 3.98MMbbls over the week to 23.4MMbbls. Latest data from International Enterprise Singapore shows that oil product stocks in Singapore increased by 3.64MMbbls over the week to 47.15MMbbls. EU members will want to come to a final decision by 5 December, which is when the ban on Russian seaborne crude into the EU comes into force. Getting all members to agree on a price cap could prove difficult, just like we saw with the EU ban on Russian oil, which was watered down to include only seaborne trade, given objections from Hungary. There are suggestions that the aim is to come to a preliminary agreement by early October, ahead of an EU leaders’ meeting. Member states will apparently be meeting over the weekend to discuss the cap, along with a number of other new potential sanctions. The dominance of the USD at the moment will only add to these headwinds.Īccording to reports the EU is trying to push ahead with the G-7 price cap on Russian oil, after Putin’s latest escalation in the war. However, with expectations of only further monetary tightening in the months ahead, commodity markets are likely to face some strong headwinds. ![]() ICE Brent managed to settle 0.7% higher on the day. Despite a raft of central banks hiking rates yesterday in a bid to rein in inflation, the oil market held up well. ![]()
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