How are everyone's resource stocks recently - a summary of key oil, gas, gold, and iron news (December 7)
Seeing how many friends like resource stocks, but don't focus on commodity news at the bottom line, we've loaded up on commodity news to make it easier for everyone to invest in resource stocks.
$SSIF DCE Iron Ore Futures Index ETF(03047.HK$
The decline in the energy complex dampened commodity sentiment, but was partly offset by hopes that loose monetary policy would support demand. Crude oil fell to a five-month low due to concerns about oversupply. The market was shocked by data showing that US output was still at an all-time high. This is the case despite government reports showing a decline in US inventories. Total commercial crude oil inventories fell by 4,633 barrels last week. US exports also declined (-416 kb/d). Part of the bearish sentiment may have been triggered by increased inventories of refined fuels, with gasoline and distillate stocks increasing by 5,420 kbbl and 1,267 kbbl, respectively. However, the size of the EIA adjustment factor (similar to the margin of error) also played a role. The price of 2.7mbbl is enough for traders to completely ignore any bullish signals in the weekly inventory report. It is less than a week until OPEC announced that it will cut production by 1.7mb/d in the first quarter of 2024 to support the market. Russian Deputy Prime Minister Alexander Novak said that OPEC+ may take further measures if last week's agreement is insufficient to balance the market. Kuwait's oil minister Saad Al-Barrack said the country is fully committed to an additional voluntary production cut of 135 kb/d and praised the positive steps taken by OPEC+ countries.
European gas rebounded from a two-month low due to signs of improved demand. Some weather models suggest that although the weather returns to mild this week, the northern region will still experience unusually cold weather in the second half of December. Furthermore, for some power plants, natural gas's recent profitability has improved relative to coal's decline, which may support demand and provide a bottom line for prices. Amidst further supply-side issues, North Asian LNG prices remained stable. Due to another delay in the restart, the Prelude LNG facility cancelled shipments in early December. $YANKUANG ENERGY(01171.HK$
Copper prices rose along with other risky assets after US companies scaled back recruitment in November, data showed. This is seen as a reason to support the Fed starting to cut interest rates next year. However, as concerns about demand continued to loom over the market, gains were recovered at the end of the session. The slow global economy and China's real estate industry are still the focus of attention. Although the closure of the First Quantum Cobre mine posed short-term problems, market sentiment also took a hit after the Chilean government said it plans to increase copper production by 20% to 1.04 tons by 2026.
Gold managed to stay above the water as investors weighed interest rate prospects. As private employment weakens, the swap market currently values the probability that the Federal Reserve will cut borrowing costs in March is 60%. $SD GOLD(01787.HK$
Iron ore futures rose as China's steel production increased. According to data from the China Iron and Steel Association, in the last 10 days of November, the daily output of China's major steel mills increased by 2.4% compared to the middle of the month. Despite continued compression in profit margins, steel mills are hoping for an improvement in consumption next year.
The decline in the energy complex dampened commodity sentiment, but was partly offset by hopes that loose monetary policy would support demand. Crude oil fell to a five-month low due to concerns about oversupply. The market was shocked by data showing that US output was still at an all-time high. This is the case despite government reports showing a decline in US inventories. Total commercial crude oil inventories fell by 4,633 barrels last week. US exports also declined (-416 kb/d). Part of the bearish sentiment may have been triggered by increased inventories of refined fuels, with gasoline and distillate stocks increasing by 5,420 kbbl and 1,267 kbbl, respectively. However, the size of the EIA adjustment factor (similar to the margin of error) also played a role. The price of 2.7mbbl is enough for traders to completely ignore any bullish signals in the weekly inventory report. It is less than a week until OPEC announced that it will cut production by 1.7mb/d in the first quarter of 2024 to support the market. Russian Deputy Prime Minister Alexander Novak said that OPEC+ may take further measures if last week's agreement is insufficient to balance the market. Kuwait's oil minister Saad Al-Barrack said the country is fully committed to an additional voluntary production cut of 135 kb/d and praised the positive steps taken by OPEC+ countries.
European gas rebounded from a two-month low due to signs of improved demand. Some weather models suggest that although the weather returns to mild this week, the northern region will still experience unusually cold weather in the second half of December. Furthermore, for some power plants, natural gas's recent profitability has improved relative to coal's decline, which may support demand and provide a bottom line for prices. Amidst further supply-side issues, North Asian LNG prices remained stable. Due to another delay in the restart, the Prelude LNG facility cancelled shipments in early December. $YANKUANG ENERGY(01171.HK$
Copper prices rose along with other risky assets after US companies scaled back recruitment in November, data showed. This is seen as a reason to support the Fed starting to cut interest rates next year. However, as concerns about demand continued to loom over the market, gains were recovered at the end of the session. The slow global economy and China's real estate industry are still the focus of attention. Although the closure of the First Quantum Cobre mine posed short-term problems, market sentiment also took a hit after the Chilean government said it plans to increase copper production by 20% to 1.04 tons by 2026.
Gold managed to stay above the water as investors weighed interest rate prospects. As private employment weakens, the swap market currently values the probability that the Federal Reserve will cut borrowing costs in March is 60%. $SD GOLD(01787.HK$
Iron ore futures rose as China's steel production increased. According to data from the China Iron and Steel Association, in the last 10 days of November, the daily output of China's major steel mills increased by 2.4% compared to the middle of the month. Despite continued compression in profit margins, steel mills are hoping for an improvement in consumption next year.
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3047 is a team specializing in the research of commodities and smart beta. We like to exchange investment strategies.
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