Published on 19/05/2017 10:04:20 AM | Source: Angel Commodities Pvt Ltd

We expect Crude oil prices to trade higher today - Angel Commodities

Posted in Commodities Reports | #Commodity Tips #MCX #Angel Broking Pvt Ltd


Bullion

Gold

On Thursday, spot gold prices declined by 1.09 percent to close at $1246.6 per ounce s a bounce in the dollar prompted some buyers to cash in gains after its biggest one-day rally in nearly a year, though uncertainty over the outlook for the Trump presidency underpinned the metal near two-week highs.

Gold surged nearly 2 percent on Wednesday, its biggest one-day jump since Britain's June vote to leave the European Union, on reports that U.S. President Donald Trump had tried to intervene in an investigation into alleged Russian interference in last year's U.S. election.

The latest reports on Trump came after a turbulent week in which he fired FBI Director James Comey and discussed sensitive national security information with Russia's foreign minister, causing investors to question whether he can deliver on pledged tax cuts and deregulation.

On the MCX, gold prices rose by 0.3 percent to close at Rs.28705 per 10 gms.

 

Silver

Spot silver prices declined by 1.8 percent to close at $16.5 per ounce in line with decline in gold prices while market focus shifted to tax cuts and infra spending in the US.

On the MCX, silver prices declined by 0.8 percent at Rs.38889 per kg.

 

Outlook

On the MCX, gold prices are expected to trade sideways today, international markets are trading higher by 0.13 percent at $1248.68 per ounce. Market focus has now shifted to promised tax cuts and infra spending by the US president which in turn can pull down precious metals.

 

Energy

Crude Oil

WTI oil prices rose by 0.6 percent on Thursday to close at $49.4 per barrel s key producing countries suggested they would extend supply cuts to reduce an ongoing global crude glut.

Market watchers are growing more confident that the Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia will extend output cuts of almost 1.8 million barrels per day (bpd) until the end of March 2018.

Both benchmarks rose on Wednesday after news of a drawdown in U.S. crude inventories and a dip in U.S. output. The U.S. Energy Information Administration said inventories fell 1.8 million barrels in the week to May 12 to 520.8 million barrels. In addition to U.S. crude stocks drawing down for the sixth consecutive week, the EIA showed an increase in refining rates.

On the MCX, oil prices rose by 1.5 percent to close at Rs.3203 per barrel.

 

Outlook

We expect oil prices to trade higher today continuing its positive momentum from the previous trading session as markets remain confident of production cuts by the OPEC as well as Non-OPEC nations.

On the MCX, oil prices are expected to trade positive today, international markets are trading higher by 0.75 percent at $49.73 per barrel.

 

Base Metals

LME base metals traded mixed yesterday as Chinese demand concerns bothered global investors. While on the other hand, weakness in the DX supported the metals.

MCX base metals traded mixed on Thursday in line with trends from international markets.

 

Copper

LME Copper prices traded lower by 0.5 percent at $5580/t as investors grew increasingly cautious regarding tax cuts and infrastructure spending plans in the US following recent controversies involving President Trump.

Sentiments turned highly negative following news reports that President Trump asked FBI Director James Comey to drop investigation into Trump's former national security advisor. Trump shared some intelligence information with Russia’s foreign minister and ambassador in a meeting last week.

While on the other hand, latest disappointing economic data releases from China has raised demand concerns from the world’s biggest consumer. Industrial production expanded by an annual 6.5 percent in April, dropping from 7.6 percent in March while fixed asset investment data suggested a slowdown to 8.9 percent in April from 9.2 percent the previous month. Last week as well, weak inflation data coupled with sharp decline in Copper imports weighed on the metal.

MCX Copper prices traded higher by 0.4 percent to close at Rs.364.6/kg on Thursday.

 

Outlook

LME Copper prices are currently trading higher by 0.1 percent at $5585/t. Prices are expected to trade sideways today as global investors are highly cautious about the developments in the US although Trump administration is planning to move past controversies towards reforms. Also, Chinese growth remains a major cause of concern with the list of disappointing data releases.

We expect MCX copper prices to trade sideways today.

 


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