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Oil Retreated, along with Gold and Silver

Highlights:

  • ENERGY:
    Brent crude was trading with a loss of 4 cents at $82.52. Meanwhile, WTI slipped by 10 cents to $78.83.
    Gas futures soared by 9.5% to settle at $6.312 per MMBtu.
  • METALS:
    Gold futures for December delivery were trading with a decline of $8.60 at $1,759.00. Meanwhile, silver futures for December delivery lost $0.059 at $22.585 an ounce.
    Three-month copper lost 0.9% to $9,089 a tonne on LME. 
  • AGRICULTURAL:
    On CBOT, soybean futures for December were trading with a gain of 15-3/4 cents at $12.51-1/2 a bushel.
    Corn futures for December delivery were trading with a loss of 3-1/4 cents at $5.37-1/2 a bushel.

Crude oil slightly retreated after passing $83

Crude oil reached a multi-year high on Wednesday, supported by OPEC’s refusal to increase output rapidly. Brent advanced as high as $83.47 retreated by 4 cents at $82.52. Meanwhile, WTI slipped by 10 cents to $78.83.

Analysts are bullish about the oil prices. Some kind of correction is expected, which surely attracts buyers in the lower levels. In any case, if there is a significant collapse, they suspect that the $75 level will be the bottom of the WTI market. 

According to analysts, the uptrend could send the price much higher than where they are.

Brent prices have surged more than 50% so far this year. 

API’s figures are showing a slowing fuel demand causing some downward pressure. The group reported that the US crude inventories increased by 951,000 barrels in the week ending October 1. Meanwhile, gasoline and distillate fuel inventories also expanded.

Now investors are looking forward to hearing official inventory numbers from the EIA.

 

US natural gas soared to 12 years high

Natural gas future prices soared to the 12 year high in New York due to supply shortage concerns. 

Gas futures soared by 9.5% to settle at $6.312 per MMBtu. It was the highest close since December 2008.

Gas prices posted a new record on Tuesday in the UK, rallying by 23% to $42.

The European Union can not obtain all the natural gas it needs to produce energy at the moment. If that continues, there is likely to be more upward pressure in the short term. It suggests that corrections will offer purchase opportunities.

The prospect of the arrival of winter in two months has also contributed to pushing up the futures contract. Analysts believe that if we have a frigid winter, the result will be an even higher pressure on prices.

Bear in mind that North America is not having the same supply problems as Europe or China.

 

Gold and silver dropped for the second day

Gold and silver prices slipped after a substantial rebound in the US stocks. 

Gold futures for December delivery were trading with a decline of $8.60 at $1,759.00. Meanwhile, silver futures for December delivery lost $0.059 at $22.585 an ounce. 

George Milling-Stanley, a chief gold analyst at State Street Global Advisors, believes that there are sufficient favorable factors to expect a significant rebound in the gold price during the fourth quarter of this year. With the current rise in riskier assets, there is a significant chance that the increase in volatility will be repeated. It will increase the attractiveness of gold as an investment asset.

Copper slid due to the dollar’s rise

The strong dollar made metals priced in the North American currency more expensive for holders of other currencies. 

Three-month copper lost 0.9% to $9,089 a tonne on LME. 

On the other hand, supply disruption threat eased in Peru, the second-biggest producer of the red metal in the world. 

On Tuesday, the government of Peru stated that it reached an agreement with the Las Bambas mine and the local community. 

Meanwhile, in the first quarter of the year, the production of copper recorded growth compared to the same period in 2020. It was mainly a consequence of the better performance of the mining units in Peru. 

 

Soybeans reversed losses

Rally in the energy market supported demand for soy-based biofuels. As a result, US soybean futures increased by $6 to reach $459.8. 

Meanwhile, corn futures settled lower in Chicago, pressured by the rapid advance of the harvest in the country. Corn closed at $211.4. On Monday, the US Department of Agriculture assessed that corn harvest was complete by 29%. Analysts say that these new supplies put some pressure on commodity prices. 

On CBOT, soybean futures for December were trading with a gain of 15-3/4 cents at $12.51-1/2 a bushel. 

Corn futures for December delivery traded with a loss of 3-1/4 cents at $5.37-1/2 a bushel.

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