Oil price highest in many years
Oil prices rose, with U.S. crude hitting its highest since 2014 and Brent hitting a three-year high, after the OPEC+ group of producers struggled to implement plans to increase output.
Closing the session on October 5, Brent crude oil increased by 1.3 USD, or 1.6%, to 82.56 USD/barrel, earlier in the session reached 83.13 USD/barrel – the highest in 3 years. West Texas Intermediate crude oil prices rose $1.31, or 1.7%, to $78.93 a barrel, at times rising more than 2% to $79.48 a barrel – the highest in nearly seven years. Both oils gained more than 2% in the previous session.
Since the beginning of the year, oil prices have increased by more than 50%, in addition to the inflationary pressure that makes oil-consuming countries such as the US and India worried that the economy will be difficult to recover after the Covid-19 pandemic. .
By the end of September 2021, the OPEC+ Joint Technical Committee (JTC) expects that oil supply this year will be short of 1.1 million bpd (bpd) and may have a surplus of 1.4 million bpd in the year. next. However, despite the pressure to increase production, OPEC+ is concerned that the 4th wave of global Covid-19 infections could affect demand recovery.
A sharp increase in global natural gas prices could cause power plants to switch from gas to oil, said Gary Cunningham, director of market research at Tradition Energy. That means crude oil prices remain supported even if there is a short-term pullback.
Natural gas price highest in 12 years
U.S. natural gas prices rose more than 9% to a 12-year high, as rising global prices boosted demand for U.S. liquefied natural gas exports.
The price of natural gas for November term on the New York Stock Exchange rose 54.6 US cents, or 9.5%, to $6,312/mmBtu – the highest since December 2008.
The price of natural gas for November 2021 futures in Europe increased by more than 21% and December 2021 futures rose 23% to a new record high, due to concerns that some European countries will not have enough gas to heat their homes. in the coming winter. Natural gas prices in Asia also surged to near record highs, as China and other major liquefied natural gas (LNG) buyers compete for the availability of goods to meet demand for the fuel. super cool.
Gold price drops
Gold prices fell sharply by 1.2%, as US Treasury yields and the strong dollar made gold less attractive, along with investors waiting for US non-farm payrolls data to be released. this weekend.
Spot gold on the LBMA fell 0.5% to $1,760.3 an ounce, the first drop in four sessions, and December 2021 gold on the New York Stock Exchange fell 0.4% to $1,760.9 an ounce. .
The dollar rose to a nearly 1-year high against a basket of major currencies last week, making gold more expensive to buy in other currencies. At the same time, the 10-year US Treasury bond yield rose to its highest level since June 2021 (1.5670%) from 1.5223%.
U.S. nonfarm payrolls data is expected to continue to improve the labor market, which could prompt the Federal Reserve to begin easing monetary stimulus before the end of the year.
The price of copper fell
Copper prices fell as the dollar strengthened ahead of US nonfarm payrolls data later this week and lingering concerns about China’s Evergrande.
Copper for three-month delivery on the London Stock Exchange fell 1.2 percent to $9,144 a tonne.
Rubber prices in Japan increase
Rubber prices in Japan rose, after the new Japanese government pledged to take any measures necessary to support the economy.
The price of rubber for March 2022 on the Osaka floor increased by 3.2 JPY, or 1.5%, to 211 JPY/kg.
New Economy Minister Daishiro Yamagiwa said the Japanese government will take all necessary measures to support the economy affected by the pandemic.
Coffee prices fall
Arabica coffee prices fell more than 4%, as rain boosted coffee crop yields in top producer Brazil.
Robusta coffee futures November 2021 on the London floor fell 37 USD, or 1.7%, to 2,111 USD/ton.
At the same time, the price of arabica coffee for December 2021 on the ICE floor fell 8.45 US cents, or 4.2%, to 1,919 USD/lb, after reaching a 2-month high ($2,0685/lb). in the previous session.
Sugar prices increase
The price of raw sugar for March 2020 futures on ICE rose 0.16 US cents, or 0.8%, to 19.85 US cents/lb.
At the same time, the price of white sugar for December 2021 on the London floor increased by 4.9 USD, or 1%, to 507.5 USD/ton.
Brokerage StoneX said that global sugar supply is expected to improve in the 2021/22 season, due to increased production in Asia and Europe.
Soybean prices rise, corn and wheat fall
U.S. soybean prices rose 1.3%, as a rising energy market spurred demand for soybean-based biofuels.
On the Chicago Mercantile Exchange, soybean oil futures in November 2021 rose 15-3/4 US cents to 12.51-1/2 USD/bushel, soybean oil futures December 2021 increased 2.31 US cents up. 61.14 US cents/lb. The price of corn for December 2021 futures fell 3-1/4 US cent to 5.37-1/2 USD/bushel. Wheat for December 2021 futures fell 11-3/4 US cents to 7.44-3/4 USD/bushel.
Palm oil prices up 4%
Palm oil prices in Malaysia rose 4% to a record high (4,786 ringgit/ton), as crude oil prices surged and palm oil inventories fell in September 2021.
Palm oil futures December 2021 on the Bursa Malaysia exchange increased 3.38% to 4,738 ringgit ($1,134.17)/ton.
Prices of some key items on the morning of October 6:
