Oil rises to 80 USD/barrel
Brent oil prices rose to $80 per barrel, the highest since November 2021, as OPEC+ agreed to maintain its plan to increase production in February based on signs that the Omicron variant has only a slight impact on the economy. demand.
Closing the session on January 4, Brent crude oil gained 1.02 USD or 1.3% to 80 USD/barrel, almost back to the level reached on 26/11 when reports of the new variant first appeared. now, causing the price to drop more than 10% that day. WTI crude rose 91 US cents, or 1.2%, to $76.99 a barrel.
OPEC+ has agreed to maintain its plan to increase oil production by 400,000 bpd in February. The decision reflects the easing of concerns about a large glut in the first quarter, as well as a desire to provide consistent guidance for market.
Crude inventories in the US, the world’s top consumer, are forecast to fall for a sixth straight week, according to a Reuters poll.
Global manufacturing activity remained strong in December, suggesting that Omicron’s impact on manufacturing was mild.
Libya’s production could fall by 500,000-600,000 bpd in the coming weeks, more than OPEC+’s planned monthly increase.
Libya’s state oil company said oil production would fall by 200,000 bpd in a week due to maintenance at the main oil pipeline, adding disruptions two weeks ago after militias blocked operations at the field. Sharara and Wafa oil.
Gold price increases
Gold prices rose as demand was fueled by worries about a spike in the number of Omicron variant infections that could threaten the global economic recovery.
Spot gold rose 0.8 percent to $1,814.45 an ounce. US gold for February futures closed up 0.8 percent at $1,814.6 an ounce.
Gold tends to fall out of favor with investors when interest rates rise. New inflation concerns could weigh on the market in the near term and undermine demand for risk assets as bond yields could continue to rise.
Aluminum and zinc rise on supply concerns
Aluminum and zinc prices rose on concerns about supply disruptions due to persistently high energy prices, while general industrial metals rose on a weaker dollar.
Three-month aluminum delivery on the London Metal Exchange (LME) rose 1% to $2,836 a tonne, the metal having gained more than 40% last year. While zinc rose 1.6% to $3,590/ton after rising 28% in 2021.
Lower-than-normal wind speeds in Europe and less wind power exacerbated last year’s crisis, sending electricity prices to record highs. European gas prices rose more than 30% on January 4 as low supplies from Russia raised concerns about an energy crisis as the region experiences colder weather.
The USD index reversed its initial gains after data showed manufacturing activity in the US slowed in December 2021. A weaker dollar makes metals priced in these currencies cheaper for buyers in other currencies, stimulating demand.
Aluminum stocks are down more than 60% since mid-March 2021, while zinc stocks are down more than 30% since April 2021.
Coal prices increase
Dalian coking coal prices rose to their highest in more than two months as investors welcomed the new year with optimism about the outlook for steel demand in China.
The May coking coal contract on the Dalian Commodity Exchange closed up 5.7 percent at 2,337 yuan ($367.74) a ton, after touching 2,370.5 yuan in the session, its highest level. from October 28, 2021.
Coke prices rose 4.8% to CNY 3,047/ton. During the session, the price reached 2,050 CNY/ton, the highest since December 27.
Speculations about scarce coal supplies also boosted demand as Indonesia has banned coal exports over fears the country may not be able to meet the demand to produce its own electricity. However, it is still unclear how the Indonesian export ban will affect the supply of metallurgical coal to China.
On the Singapore Exchange, February iron ore contract fell 0.3 percent to $121.95 a tonne.
Bar in Shanghai increased 2.2% while hot rolled coil increased 1.8%. Stainless steel rose 0.6%.
Japanese rubber rises even as prices in Shanghai fall
Japanese rubber prices rose even as Shanghai rubber prices fell due to weak demand in China.
The rubber contract on the Osaka exchange for June term closed up 1.6 JPY ($0.0138) to 239.6 JPY/kg.
The price of rubber for May term in Shanghai fell 135 CNY (21.18 USD) to 14,695 CNY/ton.
Shanghai rubber prices changed in a narrow range due to reduced inventories and delayed imports, while demand is weak and activity at tire factories is expected to decline before the Lunar New Year holiday.
Arabica coffee increased by nearly 4%
Arabica coffee futures for March closed up 8.45 US cents, or 3.8%, to $2,3175/lb, recovering from a 1.5-month low in the previous session as investors took the opportunity to trade. re-enter the market.
However, dealers said arabica, the biggest gainer among commodities traded in 2021 with a 76% gain, remains vulnerable to the fund’s index rebalancing.
Honduras’ coffee exports nearly doubled in December 2021 from a year ago, reaching 386,806 bags (60kg/bag).
Robusta for March delivery fell $21 or 0.9% to $2,349 a tonne.
Slight change of road
Raw sugar for March futures was little changed at 18.75 US cents/lb. This contract ends in 2021 with an increase of 21.9%.
Dealers say the upside in sugar prices is limited for now due to a lack of demand and an improved outlook for next year’s crop in top producer Brazil.
India’s sugar mills produced 11.56 million tonnes of sugar in the first three months of the 2021/22 market year, up nearly 4.3% year-on-year.
March white sugar futures closed down $1.80, or 0.4 percent, at $495.3 a tonne.
Soybean, corn supported by dry weather in South America
Soybean and corn on the Chicago Board of Trade rose, as dry weather in parts of South America could affect output in some export markets, while wheat rose after three sessions of losses.
CBOT soybeans closed up 34-1/4 US cents to 13.89-3/4 USD/bushel, after hitting 13.92-1/4 USD, the highest for the most traded contract since July 21, 2021.
Corn rose 20-1/4 US cent to 6.09-1/2 USD/bushel and wheat increased 12 US cent to 7.7 USD/bushel.
The weather is forecast to return to dry and hot weather in Argentina and southern Brazil, following last week’s rains, while early harvests in northern Brazil have been delayed by rain.
Prices of some key items in the morning of January 5:
