Oil and Gas Retreated, Precious Metals are Trading Sideways
Highlights:
- ENERGY:
Brent crude was trading with a rise of 1 cent at $83.66 a barrel. Meanwhile, WTI crude fell by 0.6% or 50 cents, to $80.02.
The natural gas price slipped by 0.97% to $5.29 per mmBtu in New York. - METALS:
Gold futures for December delivery increased by $6.50 at $1,762.20. Meanwhile, Silver futures for December delivery dropped by $0.05 at $22.615 an ounce. - AGRICULTURAL:
Corn futures for December delivery dropped by 2-1/4 cents at $5.30-3/4 a bushel.
November soybeans were trading with a loss of 4-3/4 cents, at $12.23-1/2 per bushel.
The global energy crisis is growing
The WTI and Brent crude oil futures were trading unevenly early Tuesday. The bulls took a break after testing a multi-year high in the previous session. The markets have been rising for almost two months since their last major low, recorded on August 23.
Despite the setback that we have seen at the beginning of the day, the markets continue to be well supported by a rebound in the world demand that is causing energy shortages globally. The speed of economic recovery after the pandemic has pressured energy demand while oil production has slowed due to cuts in producing countries during the pandemic. Meanwhile, governments are pressured to switch to cleaner energy.
Brent crude was trading with a rise of 1 cent at $83.66 a barrel. Meanwhile, WTI crude fell by 0.6% or 50 cents, to $80.02.
Crude oil prices soared Monday to their highest levels in several years, fueled by a rebound in global demand that has contributed to energy and natural gas shortages in key economies like China.
Crude oil markets remain well supported, so analysts expect any substantial weakness to attract buyers.
Gas futures dropped for the third consecutive session
The natural gas price slipped by 0.97% to $5.29 per mmBtu in New York.
The market has been testing its lowest level since September 27.
Analysts expect to see a continuation of high volatility as the weather increases its influence on the market price.
According to NatGasWeather, for October 12-18, a meteorological pattern remains stagnant over the Western Mountains with rain in the valleys and snow in the mountains. Most of the rest of the US will have nice and warm conditions, with highs of 60 to 80 F.
Gold advances amid the economic uncertainty
Uncertainty about the future of monetary policy continues, and, consequently, the price of gold does not give clues about the direction of its next move. The price of the gold futures contract remains within the consolidation range that it has been in for almost two weeks.
Gold futures for December delivery increased by $6.50 at $1,762.20. Meanwhile, Silver futures for December delivery dropped by $0.05 at $22.615 an ounce.
Corn and soybeans waiting for the USDA report
Corn futures dropped ahead of USDA monthly supply and demand reports.
USDA said that US exporters sold 165,000 tonnes of corn to Mexico during 2021/2022.
Corn futures for December delivery dropped by 2-1/4 cents at $5.30-3/4 a bushel.
FYO reported that the market closed with soybean that traded at a loss of more than a dollar on Chicago overnight. It plunged to its lowest level since December 21, 2020.
November soybeans were trading with a loss of 4-3/4 cents, at $12.23-1/2 per bushel.
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