BNO - Commodity Roundup: Oil gold headed for weekly fall; base metals trade mixed

2023-11-03 06:03:58 ET

Oil prices headed for a second consecutive weekly loss on Friday, as concerns over China's fuel demand on the back of recent weak data, offset support from Middle East tensions and hopes of likely end to Federal Reserve policy tightening.

Signs of China's faltering economic recovery usually weighs on the outlook for certain commodities including oil and base metals.

"The price of oil has remained relatively subdued since the October 7 Hamas attacks on Israel. This is consistent with our baseline view that oil price will exit the year at $86 before declining to an average of $83 next year amid slowing global economic growth," JPM Commodities Research said.

"A blockade of the Strait of Hormuz—the world’s busiest oil-shipping channel—would shut down the region’s oil trade, supercharging oil prices. Crucially, for all of recorded history, despite many threats, the strait has never been actually closed off. Crude oil continued to flow."

Meanwhile natural gas stocks for the week ended Oct. 27, 2023 were 3,779 Bcf vs. 3,700 Bcf for the week ended Oct. 20, 2023.

Elsewhere, copper prices rose on Friday, and were set for their second straight weekly rise helped by a softer dollar, which offset demand concerns from top consumer China. Markets also cheered the Fed's pause on Wednesday, where Chairman Powell, however, did not rule out another interest rate hike. LME zinc futures rose to their highest level in almost a month, with prices reaching intra-day highs of $2,598.5/t (+7% DoD) yesterday, soon after Nyrstar announced it was closing two of its mines, according to ING Think.

Spot Gold ( XAUUSD:CUR ), meanwhile was still on course for a weekly drop following it's recent rally above $2,000 an ounce amid safe-haven flows. Bullion prices were, however, trading higher on the day.

In the agriculture market, cocoa, soybeans and wheat prices gained. In the U.S., dry weather in the corn belt was helping fieldwork, while drought conditions improved across much of the country.

Recent Commodity Price Movements

• Energy

  • WTI Crude Oil ( CL1:COM ) +0.05% to $82.50.

  • Natural Gas ( NG1:COM ) +2.01% to $3.54.

  Metals

  • Palladium ( XPDUSD:CUR ) -0.14% to $1,110.38.

  • Silver ( XAGUSD:CUR ) -0.47% to $22.64.
  • Copper ( HG1:COM ) -0.52% to $3.65.

  Agriculture

  • Corn ( C_1:COM ) -0.13% to $469.41.
  • Wheat ( W_1:COM ) +0.18% to $566.53.
  • Soybeans ( S_1:COM ) +0.29% to $1,307.75.

  Commodity ETFs

  Gold ETFs:

  • SPDR Gold Shares ETF ( NYSEARCA: GLD )
  • VanEck Gold Miners ETF ( NYSEARCA: GDX )
  • VanEck Junior Gold Miners ETF ( NYSEARCA: GDXJ )
  • iShares Gold Trust ETF ( NYSEARCA: IAU )
  • Direxion Daily Gold Miners Index Bull 2X Shares ETF ( NYSEARCA: NUGT )
  • Sprott Physical Gold Trust ( NYSEARCA: PHYS )

  Other Metal ETFs:

  • iShares Silver Trust ETF ( NYSEARCA: SLV )
  • Sprott Physical Silver Trust ( NYSEARCA: PSLV )
  • Global X Silver Miners ETF ( NYSEARCA: SIL )
  • U.S. Copper Index Fund, LP ETF ( NYSEARCA: CPER )
  • abrdn Physical Palladium Shares ETF ( NYSEARCA: PALL )

  Oil ETFs:

  • U.S. Oil Fund, LP ETF ( NYSEARCA: USO )
  • Invesco DB Oil Fund ETF ( NYSEARCA: DBO )
  • U.S. 12 Month Oil Fund, LP ETF ( NYSEARCA: USL )
  • U.S. Brent Oil Fund, LP ETF ( NYSEARCA: BNO )
  • U.S. Natural Gas Fund, LP ETF ( NYSEARCA: UNG )
  • U.S. Gasoline Fund, LP ETF ( NYSEARCA: UGA )

  Agriculture ETFs:

  • Invesco DB Agriculture Fund ETF ( NYSEARCA: DBA )
  • Teucrium Soybean ETF ( NYSEARCA: SOYB )
  • Teucrium Wheat ETF ( NYSEARCA: WEAT )
  • Teucrium Corn Fund ETF ( NYSEARCA: CORN )

For further details see: