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.
Key Quotes:
"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."
