How are your resource stocks recently — Summary of key oil, gas, gold, and iron news (Oct. 11)
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.
Crude oil declined slightly as traders assessed Hamas's raid on Israel. The war has entered its fourth day, and Israel continues to attack Gaza while preparing ground operations. The long-term impact on the region and the oil market is still uncertain, and the risk of the war spreading in various regions remains a major concern. The sharp rise in prices yesterday is more likely due to the market's assumption that Saudi Arabia will not cancel voluntary production cuts in the face of uncertainty. However, OPEC's largest oil producer has reiterated its support for OPEC+'s efforts to stabilize and balance the oil market. If disruptions occur elsewhere, this could release idle capacity to the market. $CNOOC(00883.HK$
European gas prices have soared due to concerns over the safety of Europe's energy infrastructure. Finnish Prime Minister Petri Orpo said that the gas pipeline spill connecting NATO member Finland and Estonia is suspected to have been caused by deliberate vandalism. Although the pipeline breakdown had little impact on the European gas market, it raised supply security issues at a time of heightened geopolitical risks. Chevron has been forced to shut down the Tama offshore gas platform, and the conflict's proximity to the Suez Canal (Europe's main transportation route for liquefied natural gas) has also increased the risk of supply disruptions. Due to supply risks, North Asian LNG prices are also rising, and the situation is further complicated by fears that Chevron's Australian LNG facility will go on strike again. $YANKUANG ENERGY(01171.HK$
Basic metals are under pressure due to new concerns about China's real estate market. Major real estate developer Country Garden Holdings has warned that the company may not be able to repay overseas debts and has now hired consultants, which suggests an opportunity to face restructuring. Prior to that, the International Monetary Fund raised its forecast for global inflation and lowered its forecast for economic growth in 2024. The weak economic background weighed on market sentiment, and copper led the metal lower. There are reports that China is considering further stimulus measures, and policymakers are considering issuing at least RMB 100 million in additional sovereign debt for infrastructure spending.
Iron ore futures also declined due to concerns about production cuts in Chinese steel mills. Due to weak demand after the Golden Week holiday, some steel mills proposed additional maintenance plans. The rise in coke prices has also kept steelmaking costs at a high level. This could lead to the prospect of a reduction in steel production in winter. $SSIF DCE Iron Ore Futures Index ETF(03047.HK$
After Hamas attacked Israel, safe-haven purchases triggered a return in profits, and the price of gold fell slightly. The Federal Reserve's dovish rhetoric has also led to a decline in bond yields and a weakening of the US dollar.
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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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