Every week, the commodities overview reviews the latest news on the commodities markets, to better understand the variations in energy, metals and agricultural commodity prices.
Energy : The trend in crude oil prices speaks for itself: depressed oil market fundamentals clearly outweigh geopolitical tensions in the Middle East. OPEC and the International Energy Agency (IEA) have jointly revised downwards their forecast for demand growth this year. Although OPEC and IEA estimates differ on the consistency of demand, they point to a slowdown in China, the main contributor to global demand growth. On the geopolitical front, Israel’s elimination of Hamas leader Yahya Sinoua could paradoxically bring Israel closer to a ceasefire in Gaza, but the drone attack on Prime Minister Benjamin Netanyahu’s secondary residence has rekindled speculation of an Israeli attack on Iran. On the price front, crude prices lost ground last week, but Brent and WTI have since recovered a little, trading at 74.80 and 70.80 USD a barrel respectively.
Metals : Consolidation continues in the industrial metals segment. The latest rather positive Chinese statistics failed to arouse enthusiasm, explaining the lethargy of copper, which is trading in London at USD 9378 (spot price). Gold, on the other hand, made its mark, setting a new all-time record despite a stronger US dollar and rising bond yields. This is the first time that dollar-denominated gold has traded above USD 2700.
Agricultural products: We’re a long way from the euphoria surrounding the barbaric relic in Chicago, as grain prices are back on the decline. Wheat is trading at around USD 588 (contract expiry December 2024), while corn has fallen for the second week running to 408 cents.
Read More: Commodities Overview: Doubts prevail – MarketScreener