(MENAFN– ING)
Energy – API reports oil inventory drops
NYMEX WTI is around $70/bbl and ICE Brent is just below $75/bbl as traders look for updates from the Middle East. OPEC and IEA forecasts indicate weak demand and a significant supply surplus next year, putting pressure on oil prices.
The API reported a drop in US crude oil inventories by 1.6 million barrels, contrary to expectations of a 1.5 million barrel increase. Gasoline and distillate stocks fell by 5.9 million and 2.7 million barrels, respectively. The EIA report will be out later today.
Iran experienced an oil leak near its main export terminal in the Persian Gulf, affecting subsea pipelines close to Kharg Island. The cause and impact on exports remain unclear, but containment efforts are underway.
US natural gas prices dropped over 5% to $2.37/MMBtu due to warm weather reducing demand. The EIA expects an increase of about 77.5 Bcf in natural gas inventories this week, with total US storage at 3,629 Bcf, 5.1% higher than the five-year average (as of October 4).
European gas prices also fell as LNG imports rose to the highest level since April. A mild autumn is expected to decrease demand for heating. European gas storage is currently at 95% capacity, above the five-year average of 92% (as of October 15).
Metals – Prices decline
Industrial metals edged down, and iron ore neared a three-week low following China’s limited new stimulus for its property sector. Although China plans to expand financing for housing projects, markets were disappointed by the lack of stronger measures.
Spot gold prices are near record highs ahead of US economic data releases, with safe-haven demand bolstered by uncertainty around the upcoming US presidential elections.
Agriculture – France revises soft wheat export estimates
France’s Agriculture Ministry lowers soft wheat export estimates for 2024/25 to 10 million tons, down from 10.1 million, mainly due to a 61% drop in sales outside the EU. Corn exports are raised from 4.5 million to 4.7 million tons, with inventories slightly adjusted.
The UK’s Agriculture Board estimates wheat production will fall to 11.1 million tons in 2024, 21% below the five-year average, increasing reliance on imports.
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