(MENAFN– ING)
Energy: Oil prices are stable with NYMEX WTI near $70/bbl and ICE Brent just below $75/bbl as traders wait for updates from the Middle East. OPEC and IEA reports indicate low demand and a surplus, keeping oil prices under pressure.
API data showed 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 also fell substantially. The EIA report will be released later today for more insights.
Iran reported an oil leak near the Kharg Island terminal, but the cause and effect on exports are still unclear as containment efforts begin.
US natural gas prices fell over 5% to $2.37/MMBtu due to warmer weather, which is expected to reduce demand. The EIA’s weekly storage report is anticipated to show an increase of around 77.5 Bcf in inventories.
European gas prices faced pressure as LNG flows to northwest Europe surged due to a mild autumn, while storage levels are at 95%, above the five-year average.
Metals: Industrial metals declined as iron ore dropped close to a three-week low, despite China’s attempts to support its property sector. The recent housing measures did not meet market expectations for new stimulus.
Spot gold prices remained near record highs as investors await US economic data and react to uncertainties surrounding the upcoming presidential elections.
Agriculture: France’s Agriculture Ministry adjusted soft wheat export estimates for 2024/25 to 10 million tons, down slightly from 10.1 million due to lower sales outside the EU. Corn export estimates were raised from 4.5 million to 4.7 million tons.
The UK’s wheat production is projected at 11.1 million tons for 2024, below last season’s 14 million and 21% below the five-year average, increasing its reliance on imports.
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