Commodities Prices See Corrective Pullbacks
Highlights:
- ENERGY:
WTI futures for December delivery slid by 0.73% or $0.61 to $82.81. Meanwhile, Brent futures for December delivery lost 0.97% or $0.83 to $84.99.
Natural gas futures for December were trading with a loss of 0.86%, or 0.86% at $5,400. - METALS:
Gold futures for December traded with a loss of $6.00 at $1,778.90. Meanwhile, Comex silver futures for December delivery shed $0.305 at $24.14 an ounce. - AGRICULTURAL:
Soybeans were trading with a drop by 1,28% to $451.85 on CBOT. Corn also accompanied a trend in the market and cut 1.08% to $210.03.
Oil in the correction mode
The crude oil futures fell slightly. WTI futures for December delivery slid by 0.73% or $0.61 to $82.81. Meanwhile, Brent futures for December delivery lost 0.97% or $0.83 to $84.99.
Analysts believe that despite the oil markets correcting in the short term, they are still supported in the long term.
The absence of large increases in supply from the US or OPEC is one of the reasons to expect a rise in prices. The other reason is the expectation of strong demand from electricity producers, who opt for oil instead of coal and gas because of the extreme rise in the prices of these commodities.
Last week, crude oil inventories declined and hit its lowest level in two years.
According to the EIA, crude reserves fell by 431,000 barrels.
Crude prices have been receiving upward momentum for more than a year due to reduced production by OPEC, which is now slowly raising those levels.
Last week, OPEC leader Saudi Arabia rejected calls for an acceleration in oil production. He stated that his efforts with the allies were sufficient and that they protected the oil market from the wild price swings observed.
Gas futures slipped due to expectations of increased supplies
US natural gas futures were falling early Thursday. Traders expect an increase in national natural gas reserves just below 100 BCF.
For December, natural gas futures were trading with a loss of 0.86%, or 0.86% at $5,400.
Analysts at Bespoke Weather Services think that the main factor to watch for the future will be the weather.
The EBW Analytics Group agrees that a possible change in the weather remains the key factor that can change the situation in the 48 continental US states.
Gold and silver retreated after solid gains
Gold and silver prices dropped on Thursday. Analysts believe it’s a typical correction after recent gains precious metals have posted. In addition, a firmer US dollar has been a negative factor for the precious metals prices.
Analysts are bullish on gold and silver.
Gold futures for December delivery traded with a loss of $6.00 at $1,778.90. Meanwhile, Comex silver futures for December delivery shed $0.305 at $24.14 an ounce.
Corn and soybeans dropped on Thursday
Soybeans were trading with a drop by 1,28% to $451.85 on CBOT. Corn also accompanied a trend in the market and cut 1.08% to $210.03.
The pressure comes from advancing harvest in the US midwest.
Corn export sales amounted to 1.274 million tonnes, which is close to the high end of expectations ranging from 700,000 to 1.42 million tonnes. On the other hand, USDA said that private exporters reported the trade of 130,000 tonnes of corn to Mexico.
The soybeans market is expected to start some profit-taking after five consecutive days of increases. Its exports totalled 2.878 million tonnes, which is more than analysts expectations in the range of 1.5 million to 2.52 million tonnes.
