Commodity Blog

Posts Tagged ‘NYMEX’

Crude oil rallied today together with other commodities, while gold declined as traders preferred riskier assets. The major news topic today was US employment that was much better than analysts predicted.

US nonfarm payrolls rose by 243,000 jobs in January. That’s compared to the average forecast of 150,000 and the December growth by 203,000. The unemployment rate fell to 8.3 percent, making a pleasant surprise for market participants, who expected it to stay at 8.5 percent.

Carsten Fritsch, analyst at Commerzbank, spoke about the positive impact of the news, but also mentioned a negative side of the employment growth regarding commodity prices:

The jobs data shows the economy is gaining momentum. This is bullish for risk appetite and therefore for commodity prices. However, it may limit the scope for a third round of quantitative easing, and this may limit gains.

March futures for delivery of crude oil gained $1.11 to $97.47 per barrel before trading at $96.89 by 13:42 on NYMEX. Spot price for Brent crude went up from $112.50 to $113.34 per barrel as of 17:41 GMT today on ICE. Gold dropped from $1,758.70 to $1,736.70 on COMEX today.

Crude oil and gold, as well as other commodities, jumped after the Federal Reserve maintained interest rates near zero and pledged to keep borrowing costs record low at least till late 2014. Such move was considered a ”light” version of quantitative easing. It weakened the dollar and boosted commodities priced in the US currency. March for delivery of crude oil advanced $0.66 to $100.06 per barrel on NYMEX. Brent went higher from $110.45 to $110.74 per barrel on ICE today as of 6:41 GMT. Gold was up from $1,666.50 to $1,711.00 yesterday and traded at $1,710.80 today on COMEX.

Wheat was also higher on dwindling Russian stocks. Inventories of some Russian regions declined by more than 50 percent, while other regions shipped almost all of their supplies as exports picked up. Wheat climbed from $6.4075 to $6.4650 per bushel on CBoT today.

Oil fell yesterday on concerns about the credit woes of European countries that may derail global economic growth. Today prices rebounded somewhat as tensions about Iran still provide support for the commodity.

Discussion among Greece and private bondholders about a debt haircut ended in a stalemate. The country offered very low interest rates on its bonds that creditors didn’t wish to accept. The bad outcome of the talks spoiled market sentiment that previously was lifted by speculation that European lawmakers devised plans for battling the debt crisis.

Iran still may disrupt supply of crude, but analysts think that such move is already priced in. Analysts estimated that US inventories of crude oil grew 0.9 million barrels last after falling 3.4 million barrels in the week before. A report from the Energy Information Administration about stockpiles will be released later today.

March futures for delivery of crude oil rose $0.24 to $99.19 per barrel in electronic trading on NYMEX after falling $0.63 to $98.95 yesterday. Brent rose from $110.24 to $110.52 per barrel as of 4:11 GMT today on ICE, following the drop from $110.84 to $110.33 yesterday.

Crude oil futures rose today as the growing economy of the United States reduced nation’s inventories and on concerns that Iran may disrupt supply by blocking the Strait of Hormuz.

US commercial crude oil inventories declined 3.4 million barrels last week. An increase by 2.9 million was predicted by specialists. Currently the stockpiles stand at 331.2 million barrels.

Mohammad Khazaee, Ambassador of Iran to the United Nations, explained:

There is no decision to block and close the Strait of Hormuz unless Iran is threatened seriously and somebody wants to tighten the noose. All the options are, or would be, on the table.

February futures for delivery of crude oil rallied by $1.42 to $102.01 per barrel in electronic trading on NYMEX before trading at $101.74 as of 13:03. Brent went from $111.53 to $112.01 per barrel today as of 5:24 GMT on ICE.

Commodities advanced today as German economic confidence improved, while China’s economic growth slowed, spurring speculation about stimulus. Oil, corn and soybeans were among gainers.

China’s gross domestic product increased 8.9 percent in the fourth quarter of 2011, following the 9.1 percent expansion in the third quarter. That was the slowest growth in 10 quarters. The report fueled talks that the country will perform measures to stimulate economic growth.

ZEW Economic Sentiment for Germany increased from -53.8 to -56.1 (month-on-month) in January, the highest level since July 2011. Economic expectations for the eurozone improved to -32.5 this month from -54.1 in the month before.

Standard & Poor’s downgraded credit ratings of several European countries on January 13. Markets were downbeat somewhat after the action, but quickly recovered as such move was expected and generally priced in.

February futures for delivery of crude oil advanced $2.01 (2 percent) to $100.71 per barrel on NYMEX. Brent oil rose from $111.42 to $111.57 per barrel as of 23:54 GMT today on ICE. Corn price was higher from $6.0125 to $6.0600 per bushel on CBoT today, while soybeans rallied from $11.6300 to $11.8275 per bushel.

Crude oil declined today as threat of sanctions against Iran lessened. There are rumors that the International Atomic Energy Agency will discuss with Iran its nuclear program. In the meantime, European Union officials said that an embargo on Iranian oil exports may be postponed for six months. There is no more rush to buy oil and prices reacted accordingly. February futures for crude oil delivery slipped $0.79 (0.8 percent) to $98.31 per barrel by 13:36 on NYMEX. Brent oil declined from $111.01 to $110.91 per barrel as of 20:53 GMT today on ICE, while earlier it touched $109.71 — the lowest price since January 3.

Cattle advanced as demand for beef rose, while supply decreased. Beef price increased 5 percent in the United States this year, following the 10 percent increase in 2011. Beef exports jumped 25 percent in the 10 months ended October 31 from a year ago, while cattle herds were record small last year. April futures for cattle delivery rose 0.9 percent to $1.264 per pound at 13:00 on CME.

Cocoa futures posted the biggest gain since October 2009 as a strike in Nigeria threatened to disrupt shipments. The strike of Nigerian workers that started today may lead to ports shutting down. Nigerian farmers stopped selling crops after fuel prices doubled and the government removed fuel subsidies, while prices for crops fell 40 percent. Cocoa spot price climbed from $2,033 to $2,171 per metric ton on ICE as of 22:02 GMT today and reached $2,199 earlier.

Crude oil fell today after a report showed that German industrial production declined. Germany’s output dropped 0.6 percent in November, following the 0.8 advance in October. Oil also slid on easing concerns that Iran would disrupt oil supplies from the Persian Gulf. February contract for delivery of crude oil slipped $0.25 to $101.31 per barrel on NYMEX, the lowest price this year. Brent oil declined from $113.42 to $112.33 on ICE.

Crude oil dropped today as US inventories unexpectedly increased and worries about Europe’s future intensified. Positive macroeconomic reports from the United States could bolster oil, but in practice haven’t been able to do so.

US stockpiles of crude rose by 2.2 million barrels to 329.7 million barrels last week. Forecasters predicted a drop by 1.4 million. The increase followed growth by 3.9 million in a week before.

Europe’s borrowing costs surged and concerns grew about European indebted economies, especially Greece. That’s bad for oil as the European Union consume 16 percent of global supply. The dollar advanced on the fears, adding further pressure on commodities priced in the US currency.

February futures for delivery of crude oil retreated $1.41 (1.4 percent) to $101.81 per barrel on NYMEX. Prices were up 28 percent in the last quarter. Brent went down from $113.65 to $112.44 per barrel as of 21:12 GMT on ICE today. Earlier, prices touched $114.64, the highest settlement since November 14.

Crude oil and copper pared yesterday’s gains today as concerns about the European debt crisis stopped the rally of commodities. Gold, on the other hand, profited from the worries.

Demand for German bonds on the auction yesterday was weak. Eurozone inflation fell from 3.0 percent to 2.8 percent last month, according to the preliminary estimate of Eurostat.

Earlier, crude was rising on growing tensions around Iran. Oil and copper were also rallying as manufacturing in the United States and China expanded.

February futures for delivery of crude was down $0.71 to $102.25 per barrel as of 00:43 GMT in electronic trading on NYMEX. Brent crude dropped from $113.65 to $113.05 per barrel as of 3:43 GMT today on ICE. Copper was down from $3.4700 to $3.4230 per pound, while gold went higher from $1,614.20 to $1,617.20 per ounce today on COMEX.

Gold and oil rose today, as well as most commodities, as manufacturing in China and the United States expanded. Silver also gained. The China Federation of Logistics and Purchasing reported that the nation’s Purchasing Managers’ Index increased from 49.0 to 50.3 in December. The US PMI advanced from 52.7 to 53.9 last month.

Both commodities also gained on rumors that Iran made headway in creating nuclear weapon. Gold rallied as the rumors increased its appeal as a safe asset, while oil rose on concerns that sanctions against the country from the USA would disrupt shipments.

February futures for crude oil delivery advanced as much as $4.13 to $102.96 per barrel on NYMEX, the highest price since May 10. Brent crude surged from $108.38 to $112.07 per barrel today as of 23:18 GMT on ICE. Gold was up from $1,570.10 to $1,606.70 per ounce, while silver spot price went higher from $28.17 to $29.55 per ounce on COMEX.