Oil up more than 2%
Oil prices closed at the end of the week with an increase of more than 3 USD/barrel because of tight supply. but there was a second week of declines due to concerns that rising interest rates could push the world economy into recession.
Closing the session on June 24, Brent crude oil increased by $3.07, or 2.8%, to $113.12 per barrel. WTI oil rose $3.35, or 3.2%, to $107.62 a barrel.
A survey on Friday (June 24) showed US consumer sentiment at a record low in June even as the inflation outlook improved slightly.
The Russia-Ukraine conflict has exacerbated this year’s scarce supply as well as recovering demand from the pandemic, and oil prices are close to an all-time high of $147 a barrel reached in 2008.
Crude oil gains were supported by the near shutdown in Libya due to instability. On June 23, the Libyan Oil Minister said that the President of the National Oil Corporation was hiding output data, raising doubts about the data released last week.
OPEC+, which meets on June 30, is expected to keep its plan to slightly increase oil production in July and August.
U.S. energy companies added oil and natural gas rigs this week, rising for a second straight week in a 23-month record surge, according to energy services firm Baker Hughes. government urging.
The latest week’s crude oil inventory data will be delayed to next week due to technical problems.
Gold rose
Gold prices rose as the dollar retreated and recession fears increased gold’s appeal, but the possibility of interest rate hikes kept the asset down for the week.
Spot gold rose 0.4 percent to $1,830.22 an ounce, after touching a one-week low at $1,816.1. US gold for August futures closed at $1,830.3 per ounce.
Increasing the attractiveness of gold, the USD index fell 0.2%.
Commerzbank analyst Carsten Fritsch said gold is likely to rise slightly in the second half of the year, forecast to reach $1,900 an ounce. However, in the short term, the Fed’s aggressive rate hikes are not supportive for gold.
In the spot market, dealers said prices fell this week in India to lure buyers as the wedding season ends, while some consumers in China bought gold as a hedge against economic concerns. economic.
Copper has its worst week in a year, tin drops
Copper prices fell at the end of the week, setting up their biggest weekly loss in a year, down about 6.5%, as investors worried that efforts by central banks to contain inflation would stifle growth. economic growth and reduce metal demand.
Other industrial metals also fell, with nickel down about 13% for the week and tin down 22%, the biggest one-week drop since 2005.
Three-month copper on the London Metal Exchange fell 0.5% to $8,367 a tonne after touching $8,122.5 a tonne, down 25% from its March peak and its lowest since May. February 2021.
Copper prices could fall in terms of production costs, around $7,000-7,500 a tonne, but limited supply and growing demand for use in power transmission later this decade should drive prices up.
Tin fell 10.1% during the session to $24,260 a tonne, down more than 50% from a high in March, with prices falling to $22,980 a ton at times.
Nickel LME fell 6.9 percent to $22,375 a tonne and traded at a five-month low.
Dalian iron ore rose
Dalian iron ore prices rose after 10 sessions of decline, but prices in Singapore remained pressured by the gloomy outlook on demand from China, the top steel producer.
Iron ore for September delivery on the Dalian Commodity Exchange closed up 1% to 736 yuan ($109.9) a tonne. The contract has fallen 11% this week, its biggest drop since mid-February.
On the Singapore Exchange, iron ore for delivery in July fell 1% to 115 USD / ton.
On the spot market, iron ore with 62% Fe content exported to China traded at 117.5 USD/ton on May 23. The price had fallen to $112.5 the previous day, its lowest level since December 10, 2021, according to data from SteelHome.
In China’s steelmaking hub, the city of Tangshan, 56 of 126 blast furnaces were closed for maintenance, as mills struggled to cope with falling profits amid weak demand. and high inventory.
Covid-19 restrictions have put downward pressure on the real estate sector and disruptions to construction activities due to unfavorable weather are unfavorable factors for China’s steel sector.
Bar steel in Shanghai increased by 0.3%, hot rolled coil increased by 0.1%. Stainless steel fell 3.2%.
Stable Japanese rubber
Japanese rubber prices are almost stable, due to the strengthening of the JPY and concerns about rising domestic inflation but hopes of recovery in natural rubber demand in China, the world’s top consumer.
The November rubber contract on the Osaka exchange closed up 0.1 JPY to 253.9 JPY ($1.89)/kg. This contract has a week down 0.4%.
Japan’s annual core consumer inflation in May beat the central bank’s target for a second straight month, highlighting growing pressure on the country’s economy as global raw material costs higher.
A Reuters poll showed Japanese manufacturing activity likely fell in May, falling for a second straight month due to supply chain disruptions caused by the Covid-19 lockdown in China.
The price of rubber for September futures in Shanghai increased by 90 CNY to 12,800 CNY (US$1,912.30)/ton.
Natural rubber demand in China in June seems to be improved compared to April and May.
Raw sugar drops to 4-month low
Raw sugar for July futures closed down 0.1% at 18.37 US cents/lb after falling to 18.23 US cents, the lowest since March 1.
Hedge funds are selling sugar futures due to weak macroeconomics and recession fears and more favorable weather. Strong USD and weak Brazilian real are unfavorable factors for sugar and coffee.
White sugar for August futures closed down $7.4, or 1.3%, at $543.6 a tonne.
Reduced coffee
September arabica coffee futures fell 5.75 US cents or 2.5% to $2.2325/lb after falling to $2.2225, the lowest level in more than a week.
Both arabica coffee and cocoa are luxury goods, due to slowing consumer demand and spending as well as low confidence that the Ukraine conflict will affect demand and prices for these products.
Stocks of ICE-certified arabica coffee fell by 13,760 bags on June 24 to just over 955,000 bags, the lowest level since early 2000.
Robusta for September delivery closed down $42 or 2% at $2,044 a tonne.
Soybean, corn up, wheat down
U.S. soybean prices rose, ending a four-day losing streak on bargain hunting. Corn also rose after the market fell 3.3% in four sessions. Falling wheat is pressured by the ongoing harvest in US winter wheat growing regions.
Soybean futures for July on the Chicago Mercantile Exchange closed up 17-1/2 US cents to 16.10-3/4 USD/bushel. Strong crude oil markets add support to soybeans.
CBOT corn for July futures rose 3-1/2 US cents to 7.50-1/4 USD/bushel. December futures contract rose 18-1/2 US cents to $6.74.
Soft red winter wheat for July delivery fell 13-1/2 US cents to $9.23-3/4 per bushel and red hard winter wheat for July fell 12 US cents to $9.93 per bushel. bushel.
Prices of some key items on the morning of June 25:
