The highest oil price for more than a year is due to the fact that OPEC kept the output decrease unchanged
Oil prices rose to their highest level in more than a year after the Organization of the Petroleum Exporting Countries (OPEC) agreed to keep the current output level until April 2021 because of fears of increasing oil demand. fragile growth after the Covid-19 pandemic.
Ending the session, Brent oil rose $ 2.67, equivalent to 4.2%, to $ 66.74 / barrel, previously at $ 67.75 / barrel, the highest since January 2020. . Meanwhile, West Texas America (WTI) oil rose $ 2.55 (4.2) to $ 63.83 / barrel, after also reaching its highest point since January 2020, at $ 64.86 / barrel. bin.
The leader of Saudi Arabia said it will extend the time of the voluntary oil output cut by 1 million barrels a day and the next few months will decide when to gradually reduce this number.
But one factor has been true as analysts predicted, is that Russia still wants to increase production, and as a result Russia is allowed to increase its oil output by 130,000 barrels / day next April, while Kazakhstan lifts. 20,000 barrels / day.
OPEC + cut output to a record 9.7 million barrels a day last year due to reduced demand due to the pandemic. In March this year, the group still cut production by 7.15 million barrels / day, equivalent to about 7% of world demand. Saudi Arabia’s voluntary cuts brought the total restrained output to 8.125 million barrels a day.
In its latest report, OPEC expects global oil demand by 2021 to grow by 5.8 million barrels a day to about 96 million barrels a day. This figure will remain below oil demand in 2019 by about 100 million barrels / day.
Gold fell because USD and US bond yield strengthened
Gold prices fell to their lowest level in nearly 9 months due to the strengthening of the dollar and a rise in US Treasury yields after the President of the US Federal Reserve (Fed) signaled that the Fed will not move any time soon. Which measures prevent the increase in US bond yields, “eroding” the attractiveness of gold as a safe asset in the context of inflation. The increase in bond yields means that holding gold bullion is no longer suitable because it is not profitable.
At the end of the session, spot gold on London gold and silver market dropped 0.9% to 1,695.26 USD / ounce, before that, it dropped to the threshold of 1,690 USD / ounce for the first time since June 2020. US gold price in April also decreased by 0.9%, down to 1,700.7 USD / ounce.
The dollar increased to the highest level since December 2020, further reducing pressure on gold prices.
Gold is likely to start going down from this point, said expert Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
Nickel plummeted
Nickel prices continued to fall sharply in the last session, according to which the reference contract futures delivered after 3 months on the London floor fell 7.6% to 16,100 USD / ton, the lowest for about 3 months.
Nickel is an important raw material in the manufacture of stainless steel and a number of other industrial applications. Continuously plunging from 24/2 up to now, within a week, nickel prices have lost about 12%.
On the Shanghai stock exchange, nickel futures in June yesterday also dropped by 6% to 130,510 CNY / ton, the biggest drop since May 2000.
China Nickel and Stainless Steel Group, Tsingshan Holding Group, announced it will supply 100,000 tons of nickel plates to Huayou Cobalt and battery material maker CNGR Advanced Material. This information shows that the nickel market has turned from a state of lack of supply to an equilibrium.
The global aluminum manufacturers offer aluminum plus prices up 15 – 27%
Some sources know that, after quarterly direct negotiations took place on March 4, global aluminum manufacturers announced the price of aluminum plus (compared to the reference price on the London floor) for sale. for Japanese customers from April to June is 149-165 USD / ton (semi-processed aluminum) compared with the current price. Japan is Asia’s largest metal importer.
Iron and steel contradictory
On March 4, on the Shanghai floor, the price of stainless steel in May 2021 fell sharply by 6% to 13,990 CNY (2,162.09 USD) / ton after information from Tsingshan showed that nickel supply has gradually stabilized. The price of other steel products on the Shanghai floor fluctuated slightly, according to which rebar prices decreased 0.2% to 4,834 CNY / ton, while HR coil inched 0.1% to 5,012 CNY / ton. Iron ore prices on the Dalian floor increased 2% to CNY 1,175 / ton, imported iron ore 62% price 176.5 USD / ton.
Stocks of stainless steel (grade 304) in China last week increased by 15.38% from the previous week, to 520,500 tons, according to information from the company Mysteel.
Raw sugar recovered
Raw sugar prices rebounded from their 1-month low due to the strengthening of the US dollar, making the price of sugar in Brazilian reals expensive.
Ending the session, the May futures crude sugar rose 0.4% to 16.26 cents / lb, after hitting a one-month low of 15.96 in the previous session. White sugar also increased by 0.8% to 462 USD / ton.
Coffee fell for the 5th consecutive session
Arabica coffee prices continued to decline, losing 0.7% of its value to USD 1,321 / lb; Robusta also decreased by 20 USD / ton (1.4%) to 1,406 USD / ton.
Prices of some key items on the morning of March 5
