Published on 11/01/2018 12:22:46 PM | Source: IIFL Ltd

WTI Crude Oil Futures Registered A Three-Year High - IIFL

Posted in Commodities Reports| #Commodity Tips #IIFL


Gold Prices Regained Lost Ground After it Is Widely Reported That China Is Contemplating At Slowing Or Hakting Purchases Of US Sovereign Bonds. However, Ensuing Rise In US 10 yr Bond Yields Restricted Any Subtantial Upside In The Yellow Metal. We Sense that China Barely Has ANy Alternative For Deploying Their FX Reserves. There Is No Market Which Is Deep Enough Other Than US Treasuries Which Can Absorb US$3 Trillion Of Chinese Reserves. The Only Possibility Lies That Beijing Will Probably Diversify Some Part Of Ots FX Reserves In Non-Dollar Assets.

LME Zinc Strengthened In The Wake Of Trade Numbers Showing Chinese Zinc Impoerts During First 11 Months Of Last Year Rising 43% On yoy Basis. This Is Clearly Attributed To The Fact Chinese Domestic Production Has Slowed So Traders/Consumers Are Sourcing The Metal From Overseas Markets.

WTI Crude Oil Futures Registered A Three-Year High After EIA Reported Sharp Fall In US Crude Oil Inventories. However There Were Larger -Than-Expected Builds In Gasoline And Distillate Stocks. Meanwhile EIA Expects US Oil Production To Hit 10mbpd Next Month.


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