Commodity update 71
OPEC surprises the markets
After a rise of two percent during the last week, the WTI and Brent continued tenuously. However, according to the OPEC’s statement on Monday, the flow rate was dropped down to 32,1 Mio Barrel per day. Initially, a cut in production down to 32,5 Mio barrel per day was announced in 2016. In January 2017, the OPEC reference price reached with USD 52,4 the highest level within the last three and a half years.
The gold price started with USD 1,220 significantly below the level reached on last Thursday. The increase in the stock market stopped the demand for the precious metal on Friday. According to analyst Torsten Proettel, the uncertain outcome of elections in the Netherlands, France and Italy might raise the demand for gold again
After the experts of LBBW, the expected excess in supply for copper might turn in to a deficit since several mines are affected by the striking workers in Chile and a dispute in Indonesia regarding an extension of export rights. However, following analyst Achim Wittmann (LBBW) this scenario was already priced in by the market. Copper noted slightly above USD 6,100 per ton, which states a rise of ten percent within the last three months.