How are everyone's resource stocks recently - a summary of key oil, gas, gold, and iron news (November 22)
Seeing how many friends like resource stocks, but don't focus on commodity news at the bottom line, we've loaded up on commodity news to make it easier for everyone to invest in resource stocks.
A weak dollar and new supply problems have pushed up the prices of commodities other than energy. The energy complex is under pressure to supply enough.
Strong demand from the new energy sector and new supply issues drove copper prices to $8,500 per tonne. As the Shanghai futures Exchange continues to withdraw inventory, China's spot premium rose. This is the opposite of the rise in London Metal Exchange inventories. Renewed supply risks in Peru and Panama raised concerns about tight mine supply and supported prices. However, other metals are still under pressure. Nickel prices fell below $17,000/ton due to weak demand and strong supply. $JIANGXI COPPER (00358.HK)$
Iron ore gains extended to a nine-month high due to growing optimism about China's additional stimulus measures to revive the real estate market. The newly announced capital of 1 trillion yuan will be used for construction projects. According to Bloomberg, 50 Chinese real estate developers may qualify for financing. This may help stabilize steel demand in the construction industry, although seasonal declines in construction activity will limit steel demand. $SSIF DCE Iron Ore Futures Index ETF (03047.HK)$
As the sharp decline in the US dollar increased investor appeal, the price of gold hit $2,000 per ounce. Swiss exports increased from 99.1 tons in September to 151.3 tons in October, and physical demand looks strong. India's shipments tripled to 49.4 tons ahead of holiday demand. $ZHAOJIN MINING (01818.HK)$
Driven by speculations of further OPEC+ production cuts, crude oil prices recovered their gains. Developments on the supply side have been mixed. Although market consensus indicates that Saudi Arabia and Russia will extend voluntary production cuts until 2024, any further production cuts in other member states will be critical in determining future prices. Some member countries, such as the United Arab Emirates, expect to increase production by 135 kb/d to 3.075mb/d by 2024. Prior to the OPEC+ meeting, Russian oil exports fell to 2.7mb/d for the week ending November 19. November 26th. This is the biggest weekly decline of 0.58mb/d and the lowest export volume in the past two months. Iran's oil minister said that the country's oil production will increase to 3.6 mb/d in 2024 and 4 mb/d in 2025. The current production is 3.1 mb/d.
European gas prices have declined slightly due to sufficient stocks. Natural gas reserves are almost full, or 99%, compared to the seasonal average of 88%. The colder weather forecast for the end of this month failed to support the price. Furthermore, new supply risks due to the Houthis seizing of ships owned by Israel have subsided. There is further negative news. Russia will increase gas production after the launch of the Artic LNG 2 project, which has 3 production lines with an annual production capacity of 6.6 million tons. Due to weak demand, gas prices in North Asia fell slightly. Increased inventories in China and Japan have curtailed imports, leading to lower gas premium in Asia compared to Europe.
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3047 is a team specializing in the research of commodities and smart beta. We like to exchange investment strategies.
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