OIL HITS HIGHEST LEVELS | TODAY COMMODITY MARKET OUTLOOK 07 NOV 2017.
Bullion - Opens on negative Note Gold -29320-29340 Silver -39720-39740
Energy - Opens on positive Note Crude Oil -3712-3718 Natural Gas -202.50-203
Base Metals - Opens on negative Note Copper -450.50-450.80 Nickel -829-830 Lead -161-162 Zinc - 210.20-210.30 Aluminium -140-140.10
Precious Metals
Precious metals are likely to open flat after a bounce
back yesterday as the dollar weakened amid hazy
outlook for US monetary policy in 2018. The earlier
than expected stepping down of New York Fed
President William Dudley and other retirements due
next year will leave a lot of voting positions open in
the monetary policy committee. This has clouded the
outlook for Fed policy next year.
Base Metals
Base metals traded firm yesterday and continues
boosted by expectations of healthy demand from the
electric vehicle sector, a pollution crackdown in China
and signs of solid global economic growth. Copper
production in the Congo, rose by 9.3% in the first nine
months of this year.
Energy
Crude oil prices are likely to stay firm with both WTI
and Brent trading near two-year highs. The crackdown
on Saudi royals in last four days has created a sense of
instability in the world’s largest oil producer. This has
increased the geo-political risk premium in prices.
Fundamentals have also supported this price rally as
US rig count fell sharply last week with oil rigs down by
8 to 729, the lowest since May 2016. Optimism also
remains high amid expectations that OPEC cuts could
be extended for another nine months.
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