Commodity update 76

Last week WTI declined about 10 percent to USD 49. According to Commerzbank experts, speculators reduced their net long positions about 102,000 contracts down to 254,800. In detail, this process represented the biggest reduction per week for 10 years. Moreover the supply in the US increases, since the number of drill holes rose by 14 up to 631.

In particular, the number of drill holes doubled within 10 months. Following Commerzbank experts the new price development may affect this rise just in few weeks.

Gold

Despite the announced raise in the US interest rates Gold noted with USD 1,235 on a two week high. According to LBBW investment analysts, the expectation of this raise was already priced in, hence no significant impact occurred. Further, investors may be relieved since the raise amounted only to 25 basis points and not more than two further possible raises have been announced for this year.

Aluminium

Aluminium was traded around USD 1,900 this week. Following Commerzbank experts, the aluminium inventories decreased under the level of two million tons for the first time since 2008. This decline could indicate a higher demand, but a significant amount seems to be stored in Chinese warehouses.

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