Oil gains as OPEC plans in­for­mal talks, pre­dicts higher prices

Gold stead­ies; China’s de­mand wor­ries weigh on cop­per

The Hindu Business Line - - COMMODITIES - AGEN­CIES

Crude oil gained af­ter OPEC’s Pres­i­dent said the group will hold in­for­mal talks in Al­giers next month and pre­dicted the cur­rent bear mar­ket would be short lived. Fu­tures gained as much as 1.9 per cent in New York to the high­est price in 12 days.

Mem­bers of the Or­ga­ni­za­tion of Petroleum Ex­port­ing Coun­tries are in “con­stant de­lib­er­a­tions” on sta­bil­is­ing the mar­ket and oil prices are ex­pected to rise in the lat­ter part of 2016, ac­cord­ing to a state­ment on OPEC’s web­site at­trib­uted to Mo­hammed bin Saleh Al-Sada, Qatar’s en­ergy and industry min­is­ter and the group’s cur­rent Pres­i­dent.

Oil is fluc­tu­at­ing af­ter tum­bling more than 20 per cent into a bear mar­ket last week. US drilling is ex­pand­ing as na­tion­wide crude in­ven­to­ries con­tinue to rise, keep­ing stock­piles more than 100 mil­lion bar­rels above the five-year av­er­age.

OPEC mem­bers al­ways in­tended to dis­cuss the mar­ket when they gather for the In­ter­na­tional En­ergy Fo­rum in Al­ge­ria next month, but there are no plans to re­new the failed push for a pro­duc­tion freeze, ac­cord­ing to two del­e­gates from the group.

“If the mar­ket is re­bal­anced next year, you don’t need a freeze,” said Giovanni Staunovo, an analyst at UBS Group AG.

He agreed with Al Sada’s view that oil de­mand will be higher in the sec­ond half com­pared with last year.

West Texas In­ter­me­di­ate for Septem­ber de­liv­ery was at $42.60 a bar­rel on the New York Mer­can­tile Ex­change, up 80 cents, . The con­tract fell 13 cents to $41.80 on Fri­day. To­tal vol­ume traded was 2 per cent above the 100-day av­er­age.

Brent for Oc­to­ber set­tle­ment was 75 cents higher at $45.02 a bar­rel on the Lon­don-based ICE Fu­tures Europe ex­change. Prices lost 2 cents to $44.27 on Fri­day.

The global bench­mark traded at a pre­mium of $1.71 to WTI for Oc­to­ber.

Gold stead­ied af­ter fall­ing to a one-week low on Mon­day as down­ward mo­men­tum from stronger-than-ex­pected US jobs fig­ures late last week lost steam, with con­cerns over neg­a­tive global eco­nomic sen­ti­ment lend­ing sup­port.

US gold for De­cem­ber de­liv­ery edged 0.1 per cent lower to $1,342.90 an ounce.

Hold­ings of SPDR Gold Trust, the world's largest gold-backed ex­change-traded fund (ETF), rose by 7.1 tonnes to 980.3 tonnes on Fri­day, its big­gest one-day in­flow since late June.

Among other pre­cious met­als, sil­ver was up 1 per cent at $19.85 an ounce af­ter hit­ting a near twoweek low at $19.56. Plat­inum gained 0.9 per cent to $1,152.10, while pal­la­dium was up 0.4 per cent at $696.47.

Cop­per rose on Mon­day along­side eq­ui­ties af­ter the lat­est monthly US jobs data helped buoy sen­ti­ment, but wor­ries about de­mand in top con­sumer China kept prices near four-week lows.

Bench­mark cop­per on the Lon­don Metal Ex­change gained 0.4 per cent to $4,810 a tonne in of­fi­cial trad­ing.

Three-month zinc was un­traded in the rings, but bid up $2,280 a tonne. It is up nearly 60 per cent from Jan­uary lows on con­cern about mar­ket deficits cre­ated by mine clo­sures.

Tin was bid down 1 per cent at $18,175.

Alu­minium was up 0.4 per cent at $1,651.1; lead added 0.8 per cent to $1,800 and nickel gained 0.9 per cent to $10,820 a tonne.

Bul­lion prices (in ₹)

Mum­bai: Sil­ver 46,430/kg: gold 30,850/10 gm; gold .999 31,000/ 10 gm. (Rates in­clude VAT)

Chen­nai: Bar sil­ver 47,280/kg; stan­dard gold 31,480/10 gm; re­tail sil­ver 50.60/gm; 22 carat re­tail or­na­ment gold 2,943/gm. (Rates from PTI)

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