Oil gains as OPEC plans informal talks, predicts higher prices
Gold steadies; China’s demand worries weigh on copper
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)