Commodities Update 39

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The oil price raised at the beginning of this week. Brent rebounded 0,5 percent on Monday afternoon, while WTI increased by 0,2 percent in the same time. Month to date WTI gained almost 6 percent and Brent increased by 6,5 percent. After the failure of the oil producers to find an agreement in Doha, oil remains an oversupplied commodity and therefore cheap. Moreover, Iran wants to reach pre-sanction oil output.

On Monday gold was at USD 1,240 per Ounce and increased slightly. At the beginning of last week gold was at USD 1,250. The gold price decreased at the end of last week. Main driver of the decrease was a stronger USD/EUR exchange rate reaching a 3,5 week high. A strong labor report from the US led many Investors think that the FED will not raise rates soon. Silver reached a 11 month high last at USD 17,70 per Ounce. The demand toward physical Silver could provide a strong support.

Copper pricing on Friday was more than USD 5,000 per ton buoyed by oil price. The demand toward copper could raise next months. China’s increasing demand and inventories fall were the main drivers. China had decided to lower its production by about 350.000 tons (more than 1,5 percent of the copper world production output in 2015). According to a Commerzbank Research Note copper pricing is expected to rise on a mid/long term view.