OIL PRICES UP ON LOWER US CRUDE STOCKS | COMMODITY MARKET NEWS OUTLOOK 14 DEC 2017.

COMMODITY MARKET NEWS

Gold prices rose on Wednesday, extending gains to 1 percent as the dollar fell after the U.S. Federal Reserve raised interest rates as expected but left its outlook unchanged for coming years. The spot gold price rallied to $1,256.87 after the Fed raised its benchmark interest rates by 25 basis points, or a quarter of a percentage point.

Silver was up 2.1 percent at $16.06 an ounce after earlier hitting a five month low of $15.59.

Oil prices slipped for a second straight day on Wednesday, as a slump in U.S. crude stockpiles was offset by a larger-than-forecast rise in gasoline inventories and as U.S. crude output continued to grow to record highs. U.S. crude inventories last week dropped 5.1 million barrels, more than anticipated, and production hit another record high at 9.78 million barrels per day (bpd), government data showed. The U.S. peak, when records were only kept on a monthly basis, is 10.04 million bpd, set in November 1970.

We expect Natural gas prices to trade negative on the back of lack of demand.

Copper rose on Wednesday as prices extended a correction from last week's sharp fall, but moves were muted ahead of an expected interest rate increase from the U.S. Federal Reserve. Global shares reached another record high as the Fed geared up to raise rates for the third time this year. However, the U.S. dollar weakened after consumer price data showed sluggish inflation, adding to concerns the bank will be less able to execute multiple rate increases next year. Copper plunged 4 percent on Dec. 5, its biggest one-day drop in two years. It has since recovered some but not all of those losses. Some upbeat data out of China last week has helped allay concerns over Chinese demand, Julius Baer analyst Carsten Menke said, while moves on Comex had also improved the technical picture for the metal