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Published on 20/09/2019 10:20:20 AM | Source: Angel Broking Pvt Ltd

We expect oil prices to trade higher today - Angel Commodities

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

Bullion

Gold

On Thursday, spot gold prices ended higher by 0.36 percent to close at $1499.0 per ounce. Prices found some support as Switzerland’s and UK’s central banks did not follow the U.S. Federal Reserve in trimming down their interest rates which weighed on the Dollar Index and in turn supported Gold prices.

Gold which is considered as a hedge against Oil inflation was further pressurized after the oil prices pulled back after a solid rally earlier this week following attacks on Saudi’s production facilities. Oil prices dipped lower after Saudis energy minster stated that it would restore its output by the end of September 2019 which capped the gains for the yellow metal.

U.S. & Chinese trade officials meet face to face for the first time in two months to try and find a way out of the protracted trade spat which has hampered the global economic growth. The trade talks commenced yesterday and will continue today as well.

Silver

On Thursday, Spot silver ended higher by 0.17 percent to close at 17.8 per ounce while MCX silver prices ended marginally higher by 0.03 percent to close at Rs.46606.0 per kg.

Outlook

Mixed signals by the U.S. Federal Reserve for the next move amid easing of tension between U.S. & China might weigh on Gold prices.

On the MCX, gold prices are expected to trade lower today; international markets are trading higher by 0.29 percent to close at $1510.55 ounce.

 

Energy

Crude Oil

On Thursday, WTI Crude prices ended marginally higher by 0.03 percent to close at $58.1 per barrel. The robust rally in Crude prices earlier this week continued to lose steam as Saudi’s energy stated that they might restore the lost production by the end of this month. he further added that Saudi Arabia will produce 12 million barrels per day by the end of November, 2019.

Prices were further pressurized after U.S. Crude inventory levels surged unexpectedly in the week ending on13th September 2019. After declining for four weeks continuously, the inventory levels rose by 1.1 million barrels after the refineries trim down production amid growing imports.

Prices were further pressurized as China’s Manufacturing sector PMI declined to 49.5 in August 2019 due to weakening of domestic demand and escalating tension between U.S. & China.

Outlook

Easing of global supply concerns amid weak economic number by China might weigh on the prices.

We expect oil prices to trade higher today, international markets are trading higher by 1.01 percent at $58.7 per barrel.

 

Base Metals

On Thursday, base metal prices on the LME were mixed with Nickel being the highest gainer amongst the pack. Weaker Dollar amid rising optimism over a possible trade deal between U.S. & China supported the industrial metal prices.

U.S. & China trade officials began with the face to face negotiations for the first time in two months to find a solution to the prolonged trade war which has dampened the demand prospects for base metals. The two days of trade talks is believed to lay the ground work for high level negotiations between U.S. & China.

As per reports from the International Nickel Study Group (INSG), the global Nickel market witnessed a deficit of 6,700 tonnes in July 2019 which widened from a revised deficit of 2,700 tonnes in June 2019.

The demand prospects for the industrial metal continue to remain weak as China’s manufacturing sector PMI dipped to 49.5 in August 2019. China being the biggest metal consumer, weak economic data from China might push the prices lower.

 

Copper

On Thursday, LME Copper prices ended lower by 0.45 percent to close at $5788 per tonne. Weak economic data from China clouded the demand prospects for Industrial metals and pushed the prices lower.

Outlook

Optimism over a possible trade deal between U.S. & China might support the industrial metal prices. However, weak economic data from China might limit the gains.

On the MCX, Copper prices are expected to trade higher today; international markets trading higher by 0.29 percent at $5810.75 per tonne.

 

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