Commodities: Mixed performance – ANZ

Research Team at ANZ, notes that the commodities were mixed in the previous session, with crude oil higher while metals struggled.

Key Quotes

“Further talk of production cuts in the oil market saw prices surge overnight. Saudi Arabia’s energy minister, Khalid Al-Falih said that the kingdom was ready to work with non-OPEC partners to help rebalance the market. This has most likely caused some investors to close out their recent bearish bets, pushing prices higher. Falling inventories continue to support the base metal markets.

Copper stocks held on the LME fell 0.4% to 203,925 tonnes yesterday, and are down nearly 15% this year. News that Glencore’s copper production fell 3% in Q2 2016 also supported the market. Iron ore dipped below USD60/t as a surge in cargoes hitting Chinese ports saw physical traders take a wait and see approach. However, with demand relatively strong, the dip should be short-lived.”