Commodities mostly fell this week as traders reacted to geopolitical events in the Middle East — particularly Iran’s breakthrough nuclear deal with world powers.
Markets also ended the week on a subdued note amid Thursday’s Thanksgiving holiday in the US.
OIL: World oil prices slid on Monday after a US-led deal was struck between world powers and Iran over Tehran’s controversial nuclear program.
Brent North Sea crude shed more than US$2 at one stage after major oil producer Iran agreed on Nov. 24 to curb its nuclear program for the next six months in exchange for limited sanctions relief. The preliminary accord with world powers was expected to lay the foundations for a comprehensive agreement later this year.
“What we see ... is a downward correction of prices after the deal,” said Victor Shum of IHS Purvin and Gertz consultants.
“The impact of the deal on global oil supply will however be limited since much of the sanctions continue to remain in place,” he said.
The oil market rebounded slightly on Wednesday after official data revealed a smaller-than-expected increase for US commercial crude inventories, indicating soft demand in the world’s biggest economy.
The US Department of Energy said that US crude inventories grew by 1.6 million barrels last week, less than expectations for a rise of 1.9 million barrels.
Oil prices remain pressured by the sustained rise in official crude stockpiles over the past 10 weeks.
Elsewhere, concerns over escalating political strife in Libya continued to drive European benchmark Brent crude.
Four soldiers and at least 10 people were killed on Thursday during violence in the North African state in the aftermath of a three-day strike in protest over militias.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in January firmed to US$110.93 a barrel from US$110.33 a week earlier.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for January sank to US$93.58 a barrel from US$94.69.
PRECIOUS METALS: Gold slid on Monday to its lowest point for four-and-a-half months, as investors shunned the safe-haven metal amid easing concerns over Iran.
“Gold temporarily dipped to a 4.5-month low of US$1,225 per troy ounce as the new week of trading got underway,” Commerzbank analysts said.
“This is doubtless due first and foremost to reduced geopolitical risks following a breakthrough in the nuclear talks between the West and Iran,” they said.
By late Friday on the London Bullion Market, the price of gold rose to US$1,253 an ounce from US$1,246.25 a week earlier.
Silver held steady at US$19.93 an ounce.
On the London Platinum and Palladium Market, platinum slipped to US$1,376 an ounce from US$1,396.
Palladium increased to US$724 an ounce from US$721.
BASE METALS: Industrial metals followed oil lower after the Iranian deal, and amid the Thanksgiving break.
“Ahead of the US Thanksgiving holiday on Thursday, the base metals markets have been quiet, with participants happy to sit on the sidelines,” Standard Bank analyst Leon Westgate said.
“As a consequence, turnover has been pretty subdued, while prices have also tended to edge sideways with the metals trading in fairly limited intraday ranges,” he said.
By Friday on the London Metal Exchange, copper for delivery in three months dipped to US$7,068 a tonne from US$7,077.77 a week earlier.
Three-month aluminum reversed to US$1,763 a tonne from US$1,793.
Three-month lead slid to US$2,086 a tonne from US$2,108.
Three-month tin dipped to US$22,760 a tonne from US$22,845.
Three-month nickel dropped to US$13,501 a tonne from US$13,560, and three-month zinc declined to US$1,883 a tonne from US$1,909.50.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
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