18 C
Friday, September 29, 2023

Oil Price Hits the Highest Since 2018

Must read


Commodities Prices Soared in 2021


    WTI crude for August delivery hit $74.96 a barrel, while Brent traded at $75.96 for September delivery.
    Demand for Natural gas is increasing, with prices surging by more than 2%.
    Gold and Silver prices increased despite the dollar strength. Meanwhile, China’s factory activity affects Copper value.
    Soybean futures rose by 80.75 cents while Corn climbed by 40 cents.

Oil Prices Hit their Highest Since 2018

Crude prices advanced by 2% on Thursday, supported by the prospect of more robust demand and lower inventories in the United States.

WTI crude, operating on the New York futures market, Nymex, advanced by 2.03%, trading at $74.96 a barrel for August delivery.

Brent crude from the North Sea, on ICE, gained 1.80% to $75.96 for September delivery.

Since the beginning of the year, the WTI crude has gained more than 50%. Demand for black gold has increased, too, thanks to the economic reopening and rebound in travel and transportation. OPEC and its allies have been optimistic about improved market conditions and prospects for fuel demand. 

Oil producers are set to meet today to decide on future policy about crude production. They will have a videoconference at 2 pm London time.

OPEC reported that its crude oil basket closed yesterday at $73.60 a barrel, compared to $73.34 last week, representing an increase of 0,35%. 

Bank of America recently stated that oil could climb to $100 per barrel amid accelerating demand.


The price of natural gas increased by 2%

Natural gas futures surged more than 2% today. For July, natural gas delivery increased by 2.31%, or Rs 6.30, to Rs 278.50 per mmBtu on MCX. 

Gas delivery for August jumped by 2.36%, or Rs 6.30, to Rs 277.20 per mmBtu. 

Market players are looking forward to the weekly inventory report from the Energy Information Administration.

Along with crude oil, natural gas has been one of the best performing asset classes this year. The commodity advanced by 49.26% so far in 2021. Gas prices followed the robust global trend and extended gains.

Due to forecasts for hot summer and before the beginning of the Tokyo 2020 Olympic Games, June shipments to Japan increased by 18% compared to the previous month. 

On the other hand, China imported around 6.4 million tonnes of gas in June. It is less than May; however, it is a 26% rise compared to last year. According to traders, China is preparing for winter, and it results in a lot of buying. 

Gold advanced despite the dollar increase

Gold prices expanded on Thursday, despite the strong dollar. 

The MCX gold August futures in India stood at Rs 46,963 per 10 gram, increasing by 0.26%. The spot gold price remained lower in the country, at Rs 46,730. It decreased from Rs 46,740 registered yesterday. 

On Thursday, the global gold prices rose by 0.29%. 

On the Comex, gold futures for August delivery were trading at $1,778.45 an ounce.

The rise in the price of solar panel components could affect silver

The MCX September silver contracts advanced by 0.58%. They stood at Rs 69,477 a kilogram at 9.30 am.

On the Comex, silver for July delivery rose by 0.66% to trade at 26.337 an ounce.

Silver is one of the fundamental elements in the manufacturing process of photovoltaic solar panels. The industry consumed 101 million ounces of this metal in 2020, which is 10% of the total demand. However, the rise in the price of other components could threaten the solar installation plans of countries such as the US and China, affecting the price of silver.

China’s relaxed factory activity hits copper

Copper for September delivery fell by 0.51% to trade at $4.2700 a pound on the Comex.

Three-month copper on the LME sank by 0.5% at $9,330 a tonne. Meanwhile, the most-traded August copper contract on the Shanghai Futures Exchange settled almost flat.

The red metal prices have been affected by China’s factory activity, which slipped to a four-month low last month.

Corn and Soybean futures rose after the USDA report

After the USDA reported on stocks and planting, soybeans’ price surged by $33.2, reaching $500 in the Chicago market on Wednesday. 

The agency stated soybean plantations were 87.555 million acres, compared to analysts’ expectations of 88.955 million. Those estimates fueled concern about global supply.

Moreover, soybean futures rose by 80.75 cents at $13.9325 a bushel on the Chicago Stock exchange.

Corn futures momentarily rose above the daily limit. It followed the US Department of Agriculture estimation of crop plantings, equaling 92.692 million acres, below the expected 93.787 million acres.

The most active corn futures contract on the Chicago Stock Exchange climbed by 40 cents to $5.8850 a bushel.

Market analyst Ariel Tejera believes that prices will be susceptible to the forecasts and the evolution of crops. Besides, she expects a highly fluctuated market based on the development of the climate perspectives.


The post Oil Price Hits the Highest Since 2018 appeared first on FinanceBrokerage.

Source link

More articles

Latest article