Commodity markets moved higher this week on upbeat US data and rising stock markets, given a boost after the IMF ramped up its global growth forecast for this year, analysts said.
“Commodity prices have returned to positive territory in recent days, although fragile sentiment on the broader macro-economy remains,” Barclays Capital research analyst Sudakshina Unnikrishnan said.
OIL: Crude prices rebounded, topping US$76 on positive investor sentiment amid hopes of sustained solid energy demand.
“This week, crude oil prices rebounded and traded above US$76 per barrel, buoyed by the recent rally in the global equities markets,” analyst Myrto Sokou at the Sucden brokerage in London said. “It looks like we have seen the bottom [of the market] as this week crude oil prices tested a four-week low near US$71 but easily recovered.”
Stronger demand in the US, shown by a drop in crude inventories there, also helped push prices higher.
“A slightly better IMF world growth outlook helped support both equities and commodity markets,” said Andrey Kryuchenkov, an analyst for Russian financial group VTB Capital.
The market was buoyed by a regular report showing that US crude oil reserves plunged almost 5 million barrels in the week ending July 2, much more than expected as Gulf of Mexico production was impacted by Hurricane Alex last week.
By late Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in August had jumped to US$76.04 a barrel from US$72.98 the previous week.
On London’s Intercontinental Exchange, Brent North Sea crude for August delivery climbed to US$75.39 from US$72.38.
PRECIOUS METALS: Precious metals held steady, with gold creeping higher after recently striking a record high.
By late on Friday on the London Bullion Market, gold had firmed to US$1,208.75 an ounce from US$1,201.50 the previous week. Silver slid to US$17.87 an ounce from US$17.98.
On the London Platinum and Palladium Market, platinum edged up to US$1,527 an ounce from US$1,516.
Palladium increased to US$454 an ounce from US$433.
BASE METALS: Prices of industrial metals rose across the board.
“Metal prices are still getting support from a slightly weaker US dollar and firmer equity markets, in the Asian region especially,” Commerzbank analysts said in a research note.
COFFEE: Coffee futures steadied, just two weeks after hitting 12-year peaks amid a tight supply situation.
NO-LIMITS PARTNERSHIP: ‘The bottom line’ is that if the US were to have a conflict with China or Russia it would likely open up a second front with the other, a US senator said Beijing and Moscow could cooperate in a conflict over Taiwan, the top US intelligence chief told the US Senate this week. “We see China and Russia, for the first time, exercising together in relation to Taiwan and recognizing that this is a place where China definitely wants Russia to be working with them, and we see no reason why they wouldn’t,” US Director of National Intelligence Avril Haines told a US Senate Committee on Armed Services hearing on Thursday. US Senator Mike Rounds asked Haines about such a potential scenario. He also asked US Defense Intelligence Agency Director Lieutenant General Jeffrey Kruse
INSPIRING: Taiwan has been a model in the Asia-Pacific region with its democratic transition, free and fair elections and open society, the vice president-elect said Taiwan can play a leadership role in the Asia-Pacific region, vice president-elect Hsiao Bi-khim (蕭美琴) told a forum in Taipei yesterday, highlighting the nation’s resilience in the face of geopolitical challenges. “Not only can Taiwan help, but Taiwan can lead ... not only can Taiwan play a leadership role, but Taiwan’s leadership is important to the world,” Hsiao told the annual forum hosted by the Center for Asia-Pacific Resilience and Innovation think tank. Hsiao thanked Taiwan’s international friends for their long-term support, citing the example of US President Joe Biden last month signing into law a bill to provide aid to Taiwan,
China’s intrusive and territorial claims in the Indo-Pacific region are “illegal, coercive, aggressive and deceptive,” new US Indo-Pacific Commander Admiral Samuel Paparo said on Friday, adding that he would continue working with allies and partners to keep the area free and open. Paparo made the remarks at a change-of-command ceremony at Joint Base Pearl Harbor-Hickam in Hawaii, where he took over the command from Admiral John Aquilino. “Our world faces a complex problem set in the troubling actions of the People’s Republic of China [PRC] and its rapid buildup of forces. We must be ready to answer the PRC’s increasingly intrusive and
STATE OF THE NATION: The legislature should invite the president to deliver an address every year, the TPP said, adding that Lai should also have to answer legislators’ questions The Chinese Nationalist Party (KMT) yesterday proposed inviting president-elect William Lai (賴清德) to make a historic first state of the nation address at the legislature following his inauguration on May 20. Lai is expected to face many domestic and international challenges, and should clarify his intended policies with the public’s representatives, KMT caucus secretary-general Hung Meng-kai (洪孟楷) said when making the proposal at a meeting of the legislature’s Procedure Committee. The committee voted to add the item to the agenda for Friday, along with another similar proposal put forward by the Taiwan People’s Party (TPP). The invitation is in line with Article 15-2