Commodity update 84
Worries about Oil prices. Gold traded higher due to interest rate policy.
Worries about OPEC-Deal pressure Oil prices
After Saudi Arabia, UAE and Nigeria exceeded the agreed output set by OPEC last week, Oil prices were pressured by the extra-supply. However, there is also a higher demand for Oil. According to the Energy Information Administration (EIA), inventories of Oil and gas dropped in the USA by 4.7 million and 4.4 million, respectively. Besides USA, China had positive influence on the Oil price due to higher demand last week. China reported an increase of 2.3 percent of crude oil processing compared to last month.
A weak Dollar helped the Gold price to accelerate last week. This is due to tensions in the White House and the failed attempts to reform health care in the US. In addition, ECB-President Mario Draghi presented the prospect of an adaption of the European interest rate policy. In the US, lowered expectations for increases in interest rate policy further consolidated the Gold price.
Production of Aluminium could increase to record high
Worries about an extension of the production of Aluminium pressured the price of the precious metal last week. Analysts of Commerzbank expect that worldwide production of Aluminium will exceed the mark of 60 million tons in 2017 and thus reach a new all-time record high. Especially China contributed 97.7 tons per day, an increase of 12.8 percent compared to previous year.
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