Commodities: Mixed performance - ANZ

Research Team at ANZ, notes that the commodities were mixed, with energy markets under pressure but metals findings some support.

Key Quotes

“Crude oil fell sharply despite an unexpected fall in inventories. Stocks in the US fell 559kb to 510 million barrels. Instead, the market focused on the rise in imports in the US, as well as a potential recovery in output from some OPEC members. Both Nigeria and Libya have seen domestic conflicts curb exports. However, both are looking to resume some facilities in the coming weeks.

Copper was the big mover of the day as the strong economic data in China spurred speculation that demand will strengthen. This was also supported by a fall in inventories both on the London Metal Exchange and the Shanghai Futures Exchange. The positive economic data in China also supported iron ore. Prices treaded water yesterday, with Chinese steel and iron ore futures recovering from recent selling. Roy Hill also announced that its mine in Western Australia won’t reach capacity in 2016 due to issues with its port and processing plant. The target of 55mt will now be reached in 2017.”