OIL UP AS US CRUDE INVENTORIES FALL DESPITE RISING PRODUCTION | TODAY COMMODITY MARKET OUTLOOK 02 NOV 2017.

Commodity Opening Bell

Bullion - Opens on positive Note Gold -29250-29300 Silver -33720-39740

Energy - Opens on positive Note Crude Oil -3500-3512 Natural Gas -188.50-188.70

Base Metals - Opens on positive Note Copper -449.50-450 Nickel -822-820 Lead -159.70-159.50 Zinc - 212-213 Aluminium -140-140.25

COMMODITY MARKET NEWS

Precious Metals

Precious metals are likely to open flat as the Fed meeting yesterday turned out to be a non-event as expected. The Fed kept rates unchanged and maintained the possibility of a December rate hike. The appointment of the next Fed Chair is likely to happen around 3.00 pm EST (12.30 am IST) and Jerome Powell is likely to be the candidate. The US tax bill will also be released today and will provide further details about the impending tax cuts and their funding. The dollar will however be weighed down by the ongoing probe on Trump’s campaign link with Russia.

Base Metals

Base metals continued to surge for yet another day, before some cool off in the evening session. Nickel rocketed to its daily limit in early trade, tracking overnight gains in London markets after the sector turned positive on new demand from electric vehicle battery manufacturers.

Energy

Crude oil prices are likely to stay firm despite a small correction yesterday. US inventories fell across the board with oil stocks down 2.4 million, gasoline down 4.0 million and distillate inventories down by 0.3 million barrels. US exports also touched a record 2.0 million bpd last week and this will continue to support WTI prices.