The highest oil price for 4 weeks
World oil prices rose to the highest level in 4 weeks due to the prospect of strong recovery after the Covid-19 pandemic.
At the close of April 15, Brent oil price rose 36 US cents, or 0.5%, to 66.94 USD / barrel; US light sweet oil (WTI) also increased 31 cents (0.5%) to 63.46 USD / barrel. Both oils finished at their highest level in a month.
A series of positive factors are pushing oil prices up. In this session, the highlight was that US stocks rose to a record high while USD dropped sharply.
Optimistic retail sales and business results from several companies pushed the S&P 500 and Dow Jones to record highs. Investors increasingly believe in the recovery of the largest economy in the world. Meanwhile, the dollar continues its downward trend to a 4-week low against a basket of major currencies, making oil prices cheaper for holders of other currencies. This factor is expected to continue to benefit crude oil prices in the near future.
Both the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) in this month’s report raised their forecast for global oil demand in 2021 to 5.7 million barrels per year, respectively. day and up 5.95 million barrels / day in 2021 compared to 2020. US crude inventories fell 5.9 million barrels last week, much higher than analysts’ prediction to decrease. 2.9 million barrels of which stockpiles in the East Coast fell to a record low as US refiners’ capacity utilization rates rebounded to their highest levels since March. 2020, is 85%.
Gold highest than 1 month
Gold prices reversed to increase in the past session, to the highest level in more than a month due to the decline in US Treasury bond yields, although the economy was better than expected. That motivates investors to buy gold as a safe haven to fight inflation – imminent.
At the end of this session, spot gold price increased 1.8% to 1,766.50 USD / ounce, previously at a time the price increased to 1,769.37 USD, the highest since February 26. Price of gold in June also increased by 1.8% to 1,766.80 USD / barrel.
A weaker dollar makes gold attractive to investors who use other currencies. The USD has been continuously devalued recently, today to a 4-week low, while the 10-year US Treasury bond yield continued to decline, effectively contributing to the increase in gold prices.
The US economic data has just been released showing that high inflation exists. Accordingly, retail sales in March exceeded expectations, the number of first-time unemployment benefits fell to the lowest level since mid-March 2020. CPI in March increased by 2.6% over the same period last year, of which gasoline prices rose by 22.5%. The reason is that the economic stimulus package worth 1.9 trillion USD has caused the demand for goods and services to increase rapidly at a time when the supply after the period of failure has not fully recovered.
Copper highest 6 weeks
Copper price increased strongly in the last session as banks bet that consumption of this metal would increase this year, and at the same time they believed that long-term demand would also increase due to the trend of converting to clean energy.
At the end of the session, copper futures for 3 months delivery on the London floor increased 2.2% to $ 9,278 / ton, before that time the price hit a 6-week high, at $ 9,999 / ton.
“The reason (rising prices) seems to be due to the positive reviews of some investment banks, such as Goldman Sachs, on the demand outlook,” said Julius Baer analyst Carsten Menke.
Goldman Sachs forecasts copper prices may reach 15,000 USD / ton in 2025, while raising the forecast of prices in the next 12 months to 11,000 USD / ton, average in 2021 is 9,675 USD / ton.
Citi Bank on April 12 also said copper consumption could “exceed our base forecast for 2021”, and recommended that customers approach copper as it will increase in price in the next few weeks.
Meanwhile, imports of copper into China – the world’s most consuming country – in March increased by 25% from a year earlier.
Iron ore recovered due to strong demand
Iron ore prices on the Chinese market rose 4.4% in the past session, in which spot prices and futures contracts have a large difference, amid rising demand for iron ore.
“There have been rumors that other places like the city of Haman in Hebei will also restrict steel production, but in fact they have not,” said an analyst in Tangshan. Maintaining steel production means demand for iron ore will be high.
According to the China Iron and Steel Association, daily crude steel production at major steel mills of this country reached 2.3 million tons in the first 10 days of April, up 2.9% from the end of March and up 16, 9% over the same period last year.
The price of 62% iron ore imported to Chinese seaports on April 14 was 173.5 USD / ton, unchanged from the previous session. However, the price of September ore on the Dalian trading floor closed the April 15 session up 3.6% to 1,049 CNY (160.56 USD) / ton, after hitting a high of 1,057 CNY at a time.
Reduced steel
Steel prices on the Shanghai Futures Exchange slightly decreased. Rebar delivery term in October decreased 0.5% to 5,107 CNY / ton; HR coil also dropped 0.6% to 5,393 CNY / ton and stainless steel for June term dropped 0.5% to 13,845 CNY / ton.
The highest raw sugar is nearly 1 month
Raw sugar prices continued to increase more than 3% in the past session, reaching the highest level in nearly a month due to high world commodity and stock prices and concern that Brazilian output could decline.
At the end of the session, raw sugar rose 0.52 US cents, or 3.3 percent, to 16.38 cents / lb.
The dealer said that Brazil will be very difficult to reach the output of 36 million tons of sugar as initially predicted. Therefore, sugar prices are likely to continue to increase in the near future, although strong exports from India restrain the trend of rising raw sugar prices.
The US Department of Agriculture forecasts that Thailand’s sugar production in 2021/22 will recover by 40% from 2020/21, to 10.6 million tons.
The price of white sugar in May also increased by 14 USD (3.2%) to 455.60 USD / ton.
Coffee increased
Arabica coffee futures in May increased 0.6 US cent, equivalent to 0.5%, to 1,327 USD / lb, is the fourth consecutive increase session due to concerns about a shortage of arabian coffee supply due to Brazil entering the cycle. low yields – every 2 years. This concern overwhelms the negative impact from the depreciation of Brazilian real.
“In our opinion, a decline in Brazilian output next season is quite probable, and pressure is likely to appear on the real market (more) than in the futures market. future, “Bank Rabobank wrote in a statement published this week.
Robusta coffee prices on the floor of London the last session decreased by 2 USD, equivalent to 0.1%, to 1,363 / ton.
In Asia, Vietnamese coffee prices this week remained at high levels. Accordingly, coffee beans in the Central Highlands are sold for 32,000 to 33,000 VND (1.39 – 1.43 USD) / kg, compared with 31,400 – 32,700 VND / kg a week ago.
Rubber increased 2% thanks to optimism on the economic prospects of Japan
Rubber prices in the Japanese market rose 2% in the past session, the second consecutive increase session, after the Governor of the Central Bank of Japan said that the Japanese economy was recovering from the Covid-19 pandemic.
At the close of session 15/4, September rubber on Osaka floor increased 4.8 JPY, equivalent to 2.1%, to 236.9 JPY / kg.
Japan’s economy is thriving thanks to a recovering global demand and a large-scale consumer stimulus program, although any recovery is fraught with pandemic risk factors. , BoJ Governor Haruhiko Kuroda said.
On the Shanghai bourse, September rubber futures also increased by 1.4% to 13,730 CNY / ton.
Prices of some key items on the morning of April 16
