How have everyone's resource stocks been recently? Highlights of major news on oil, gas, gold, and iron (August 25th).
Many friends like resource stocks, but there is no summary of the news on csi commodity equity index. The serial news of csi commodity equity index will make everyone more proficient in investing in resource stocks.
Relief in supply issues led to a decline in the energy industry and increased selling pressure on the Chinese economy. As concerns over the strike at Australian liquefied natural gas facilities eased, natural gas prices in Europe plummeted. The union representing workers at Woodside Energy Group's Northwest Shelf LNG business is considering a strong quote proposed by the company. Details of this quote will be announced later this week. However, all signs indicate that the strike action will be avoided. Following the news, European benchmark futures dropped by 30%. However, some of the losses were recovered in late trading due to ongoing disputes at two other Australian LNG plants. If Chevron fails to provide an adequate quote during negotiations, union members will vote to strike at Chevron's Gorgon and Wheatstone downstream facilities. These businesses still account for 24.5 tons of annual supply, which is 5% of global liquefaction capacity. After Woodside workers reach an agreement with the company on wages and other terms, LNG prices in North Asia dropped, similar to prices in Europe. With traders waiting for price fluctuations to subside, demand in the spot market remains sluggish.
$YANKUANG ENERGY (01171.HK)$
Due to considerations of increased supply and the impact of a weak economic background, crude oil edged higher in thin trading. Reports suggest that the Biden administration is negotiating the relaxation of sanctions with Venezuela, dampening market sentiment. Before sanctions were imposed on its oil industry, the country's production was as high as 2mb/d. Current production is around 750kb/d. There are also reports of easing tension between the US and Iran, opening the door to discussions on a possible nuclear agreement. Despite pessimism this week, the spot market remains tense. Kpler's data shows that OPEC's restrictions in the past month led to a sharp global oil inventory decline.
As the market prepares for earnings season, iron ore futures fell, highlighting the grim situation of China's steel industry. Data from the China Iron and Steel Industry Association shows that steel inventories have risen to the highest levels since May, failing to boost market sentiment. This weakness is caused by the struggling real estate industry, showing no signs of improvement. Recent financial support measures for the Chinese real estate industry have not brought any short-term relief to developers. A 25% year-on-year decrease in sales area in July indicates that consumers are also reluctant to buy homes. In addition, the new construction start rate and the year-on-year decrease in buildings under construction are close to 50%. This situation seems unlikely to reverse in the short term. Financial difficulties will force real estate developers to sell a large amount of unsold inventory before the number of new constructions rises.
$SSIF DCE Iron Ore Futures Index ETF (03047.HK)$
Copper prices ended a five-day rally as investors awaited Federal Reserve Chairman Powell's speech, which may provide clues to his next steps in containing inflation.
$JIANGXI COPPER (00358.HK)$
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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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