OIL PRICES GAIN AFTER OPEC EXTENSION OF PRODUCTION CUT | TODAY COMMODITY MARKET NEWS 01 DEC 2017.
Bullion - Opens on positive Note Gold -29093-29099 Silver -37710-37750
Energy - Opens on positive Note Crude Oil -3715-3720 Natural Gas -197.50-197.80
Base Metals - Opens on mixed Note Copper -441-441.50 Nickel -721.50-721 Lead -159.60-159.80 Zinc - 203-203.40 Aluminium -132.10-132.30
Precious metals are likely to open flat with gold maintaining its broader range in recent weeks. The Senate vote on the US tax bill is facing hurdles and the vote is likely to take place later today. Safe haven demand has been hit as US equity markets stay near record highs after the economy grew by 3.3% in Q3, the quickest pace in three years.
Base metal are trading mixed with copper ending down more than 1% yesterday on concerns over slowing demand from China. Some support may be seen on the back of upbeat manufacturing data from the world's largest metals consumer. China’s official PMI stood at 51.8 in Nov, compared with 51.6 in October. Copper stocks held in LME warehouses fell another 3,200 tonnes, taking them to their lowest since July 2016 at 188,525 tonnes.
Crude oil prices are likely to open flat after OPEC meeting yesterday provided no real surprises to market. OPEC and other Non-OPEC members like Russia agreed to extend their current supply cut until end of 2018. Effectively, oil supply amounting to 1.8 million bpd will stay off markets for another year and help rebalance global oil markets.
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