USO - Commodity Roundup: Oil drops amid demand fears; traders look to data for policy cues
2023-10-05 06:08:18 ET
Brent crude prices slipped on Thursday, further extending losses after a sharp sell off in the previous session, as fear of falling gasoline demand amid a challenging macroeconomic environment weighed on investor sentiment. Saudi Arabia and Russia meanwhile reaffirmed that their additional voluntary cuts will continue through to year-end.
The OPEC+ ministerial panel also made no changes to the group's oil output policy.
Sharply higher gasoline prices over the last three months have likely driven this weakness with four-week average US gasoline consumption at 8.3 mbd, 1.1 mbd lower from when retail gasoline prices bottomed out at the end of June, JPM said in a note.
Natural gas prices however ticked higher after finishing slightly higher on Wednesday, enough to post a fresh seven-month high and escape a broader selloff in crude oil and other energy commodities. Traders in the European gas market meanwhile were guided by weather forecasts with heating demand set to grow.
Among precious metals, gold ( XAUUSD:CUR ) held steady as focus turned to more jobs data this week and speeches by Federal Reserve policy makers for hints on the central bank's thinking as concerns about higher for longer interest rates grow.
Elsewhere among industrial metals, copper prices fell amid growing inventories and increased supply. The International Copper Study Group projected a deficit this year and a surplus of 467kt in 2024. Aluminium prices fell in tandem as exchange inventories rose in Gwangyang, ANZ reported.
In the agriculture market, wheat ticked up, while cocoa and soybeans edged lower.
Recent Commodity Price Movements
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Energy
Metals
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Palladium ( XPDUSD:CUR ) -0.38% to $1,162.94.
- Silver ( XAGUSD:CUR ) +0.77% to $21.12.
- Copper ( HG1:COM ) -0.66% to $3.56.
Agriculture
Commodity ETFs
Gold ETFs:
Other Metal ETFs:
Oil ETFs:
Agriculture ETFs:
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More on commodities
- Gold, Silver And Why All Mining Stocks Are Speculative Investments With Don Durrett
- Gold: Don't Walk Away, Run Away, $1600 And Below On The Table, GLD Is A Sell
- The Bullish Case For Oil Is Still Compelling
- Natural gas bucks broad commodities selloff to end at seven-month high
- Energy stocks sink as crude oil drops to four-week lows
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Commodity Roundup: Oil drops amid demand fears; traders look to data for policy cues