Commodities Stronger Across the Board - ANZ
Analysts at ANZ noted that commodity markets were stronger across the
board as the USD weakened and concerns over supply disruptions rose.
"Crude oil prices rose stronger after an EIA report showed inventories fell last week by 3.4 million barrels to 540 million barrels. This continues to be driven by falling US output, now down to 8.8 million barrels per day. Disruptions elsewhere also support the complex. Shell declared force majeure on exports from Nigeria due to infrastructure damage from militant attacks.
The weaker USD supported gold, which continues to see investor demand pick up. Gold held in ETFs rose 0.2% to 1806.7 tonnes on Tuesday, the highest level in two years.
Volatility in iron ore prices has subsided; however, physical prices continue to inch higher. Stronger Chinese steel prices brought traders back from the sidelines. A 4.4% m/m fall in iron ore exports to 28.9mt from Brazil also supported prices."