Commodities Stronger Across the Board Led by Oil – ANZ
Research Team at ANZ, notes that oil closed yesterday stronger after EIA data showed inventories in the US fell 3.23 million barrels to 532.5 million barrels.
Key Quotes
“This was tempered by an increase in crude production of 10kb/d to
8.75mb/d and the number of active rigs increasing by 9 to 325.
Industrial metals were strong as the dollar weakened and trade data from
China showed strong import demand. Ongoing central bank stimulus also
boosted sentiment in the gold market, with prices hitting a three week
high.
This goes on the back of ongoing support from US monetary policy, with the market now pricing in a zero chance of a rate hike at the FOMC meeting next week. Bulk commodities were relatively unchanged. The strong increase in China’s iron ore imports in May (+22%y/y to 86.75mt) failed to excite participants.”
