Dutch front-month natural gas futures extended gains for a third session to above €150 MWh to kick off December, the highest since mid-October, and following a 24% rise in November. Temperatures are likely to fall after mild weather last month, which will put pressure on gas stockpiles. Storages in the EU were 93.6% full as of November 28th, lower than 93.9% the day before. In Germany, stocks went down to 98.6% from 98.9%. Meanwhile, there are also processing issues at the Troll field in Norway and the UK’s Barrow North terminal. On the positive side, Gazprom continued to send gas to Europe via Ukraine, and said that it has decided against reducing supplies to Moldova while reserving the right to lower or cut shipments if Moldova fails to make agreed payments. On the political front, last week EU energy ministers failed to reach an agreement to cap natural gas prices at €275/MWh and are set to discuss again energy package on December 13th.

Api Economic

EU Natural Gas Prices Continue to Rise as Cold Weather is Coming

Solar Energy Index increased to a 10-week high of 373.85 USD

Solar Energy Index Hits 10-week High

Gold rose toward $1,780 an ounce on Thursday, hitting its strongest levels in two weeks amid a weaker dollar, as US Federal Reserve Chair Jerome Powell said the central bank could slow down the pace of rate increases as soon as December to balance risks. It confirmed market expectations that the Fed would deliver a smaller 50 basis point rate hike this month, after raising rates by 75 basis point in the last four meetings. Market pricing also indicated that the Fed funds rate will peak below 5% in May 2023 following Powell’s comments, lower than previous expectations for a peak above 5% in June. Investors now look ahead to more US data to gauge the health of the world’s largest economy, highlighted by a key monthly jobs report on Friday.

Gold Hits 2-Week High on Fed Slowdown Bets

Brent crude futures held its recent advance to above $86 on Thursday, underpinned by supply-side uncertainties and hopes for a demand recovery in top crude importer China. Official data showed that US crude inventories slumped by nearly 13 million barrels in the week ended Nov. 25, falling the most since June 2019 and compared with market expectations for a much smaller 2.758 million barrel decrease. Investors also cautiously awaited an OPEC+ meeting on Dec. 4 amid recent speculations of more production cuts, though there is little likelihood of a policy change, Reuters reported citing a source with direct knowledge of the matter. On the demand side, a top Chinese official in charge of strict Covid lockdowns signaled a softening stance in the fight against the virus, sparking hopes for stronger energy demand ahead from China.

Brent Holds Advance

WTI crude futures held its recent advance to above $80 on Thursday, underpinned by supply-side uncertainties and hopes for a demand recovery in top crude importer China. Official data showed that US crude inventories slumped by nearly 13 million barrels in the week ended Nov. 25, falling the most since June 2019 and compared with market expectations for a much smaller 2.758 million barrel decrease. Investors also cautiously awaited an OPEC+ meeting on Dec. 4 amid recent speculations of more production cuts, though there is little likelihood of a policy change, Reuters reported citing a source with direct knowledge of the matter. On the demand side, a top Chinese official in charge of strict Covid lockdowns signaled a softening stance in the fight against the virus, sparking hopes for stronger energy demand ahead from China.

Oil Holds Advance

Rubber increased 5.02% to 133.9 USD Cents / Kg

Rubber is up by 5.02%

Silver is up by 5%

Silver increased to a 25-week high of 22.27 USD/t.oz

Silver Hits 25-week High

Gold extended gains to $1,757 an ounce on Wednesday, closing in on its highest level in two weeks on expectations of a smaller 50 bps hike by the Federal Reserve in December, after delivering four straight 75 basis point increases. Gold is highly sensitive to the rates outlook as higher interest rates raise the opportunity cost of holding non-yielding bullion, denting its appeal.

Gold Extends Gains

Gasoline futures increased to above $2.4 per gallon, up from an over eight-week low of $2.3 reached on November 28, and tracking gains in other energy markets as investors continued to weight demand-supply balances. OPEC+ has been cutting production to shore up crude prices, and there has yet to be a consensus among the world's top producers if another cut is worth it at their next meeting in December. Still, gasoline prices are more than 40% below their June peak of $4.1 due to softer demand and rising domestic output. The latest EIA data showed that the US stockpiles increased by 2769 thousand barrels last week, the third straight week of gains. Meanwhile, US companies rose output by 4-5% from last year, and the Energy Department projects a similar rate of increase in 2023.

Gasoline Extends Gains

Heating oil futures were trading around the $3.3 per gallon mark, more than 60% above last year's level, supported by solid domestic demand and low inventories. The winter heating season, which typically runs from October through the end of March, is expected to keep demand for the fuel used for diesel and home heating above average. On top of that, the latest EIA data showed that heating oil stockpiles fell by 729 thousand barrels last week, the most since August 2021. In the United States, diesel and heating oil inventories have been hovering at record low levels for this time of year, with shortages along the East Coast forcing suppliers to ration and initiating emergency protocols. At the same time, in northwest Europe, stockpiles are forecasted to hit a low in November and then narrow even more by March, as the EU restrictions on importing most Russian crude oil and refined products come into force on Dec. 5 and Feb. 5, respectively.

Heating Oil Prices to Remain Elevated

US natural gas futures fell by 5% to $6.9/MMBtu, the lowest in over a week, on expectations of lower demand and near-record production levels. Forecasts released recently are pointing to milder weather over the next two weeks. Also, investors continue to monitor Freeport LNG, which delayed the plant's restart from November to mid-December. However, it has not yet submitted a request to restart the export plant, raising questions about another delay, which would mean more gas available for domestic use.

Natural Gas Futures Tumble by 5%

Cheese decreased to a 8-week low of 1.99 USD/Lbs

Cheese Hits 8-week Low

Natural gas decreased 5.07% to 6.8685 USD/MMBtu

Natural gas is down by 5.07%

Brent crude futures jumped more than 3% to fresh daily highs at around $85.60 per barrel on Wednesday, supported by a bigger-than-expected drop in US crude inventories, while investors kept an eye on the upcoming OPEC+ meeting. The latest EIA data showed that crude oil stockpiles dropped by about 12.6 million barrels in the week ended November 25, the most since the week ended June 21, 2019, and well above market expectations of a 2.758-million-barrel decline. Meanwhile, OPEC and its allies, including Russia, are expected to keep their output quotes unchanged at their next meeting on December 4. However, there has yet to be a consensus, with further production cuts still on the table. The international benchmark lost more than 8% in November amid persistent concerns about a potential global recession-driven demand downturn.

Brent Crude Extends Gains

WTI crude futures jumped more than 3% to fresh daily highs at around $81 per barrel on Wednesday, supported by a bigger-than-expected drop in US crude inventories, while investors kept an eye on the upcoming OPEC+ meeting. The latest EIA data showed that crude oil stockpiles dropped by about 12.6 million barrels in the week ended November 25, the most since the week ended June 21, 2019, and well above market expectations of a 2.758-million-barrel decline. Meanwhile, OPEC and its allies, including Russia, are expected to keep their output quotes unchanged at their next meeting on December 4. However, there has yet to be a consensus, with further production cuts still on the table. The US benchmark lost more than 6% in November amid persistent concerns about a potential global recession-driven demand downturn.

Oil Jumps, Still Poised for Sharp Monthly Drop

Milk decreased to a 8-week low of 19.89 USD/CWT

Milk Hits 8-week Low

The Baltic Dry Index, which measures the cost of shipping goods worldwide, rose about 2.1% to a near three-week high of 1,355 points on Wednesday, amid higher demand for its larger vessels. The capesize index, which tracks iron ore and coal cargos of 150,000 tonnes, advanced 3.4% to 1,643 points; and the panamax index, which tracks about 60,000 to 70,000 tonnes of coal and grains cargoes, increased for the fifth day, rising 2.9% to 1,568 points, on its best day since October 5th. Meanwhile, the supramax index shed five points to 1,172 points.

Baltic Exchange Dry Index Rises to Near 3-Week High

Palladium increased 5.01% to 1925.73 USD/t.oz

Palladium is up by 5.01%

Dutch front-month natural gas futures surged more than 8% to above €140 MWh on Wednesday, the highest in over six weeks and extending a 7.3% rise in the previous session, as stockpiles started to fall and gas traders are coming to terms that frigid temperatures going forward will drain stockpiles. Storages in the EU were 93.6% full as of November 28th, lower than 93.9% the day before. In Germany, stocks went down to 98.6% from 98.9%. Adding upward pressure, there are also processing issues at the Troll field in Norway and the UK’s Barrow North terminal. Meanwhile, Gazprom continued to send gas to Europe via Ukraine, and the company said it has decided against reducing supplies to Moldova, while reserving the right to lower or cut shipments if Moldova fails to make agreed payments. On the political front, EU energy ministers agreed to postpone the approval of a proposed gas price cap at €275/MWh to mid-December. Considering November, European natural gas prices are up almost 17%.

European Natural Gas Prices Pick Up as Stockpiles Fall

TTF Gas increased to a 6-week high of 143.5 EUR/MWh

TTF Gas Hits 6-week High

Soybeans futures extended gains to $14.7 per bushel, the highest in ten weeks, on renewed expectations of strong demand from top importer China following news the country was ramping up its vaccination programmes aimed at quashing Covid numbers. On the supply side, the upcoming soy season is likely to be affected by a lack of rain, while farmers are unincentivized to invest in planting due to the La Nina climate pattern. According to agribusiness consultancy AgRural, Brazilian soybean planting reached 87% of the estimated area in the 2022/2023 cycle amid dryness in some center-western farms that has growers concerned.

Soybeans Futures Climb to 10-Week High

UK natural gas futures soared 10% to 354 pence a therm on Wednesday, closing in on their highest level in 11 weeks on rising demand for heating due to colder weather and lower wind output. On the supply side, there are process issues at the Troll field in Norway and the UK’s Barrow North terminal. Meanwhile, Gazprom continued to ship gas to Europe via Ukraine, and the company said it has decided against reducing gas supplies to Moldova. Still, LNG cargoes to north-west Europe, particularly Britain, remain strong, putting some pressure on prices. Gas storage sites in the UK were 100% full as of November 27th, higher than the EU average of 93.9%. On the political front, EU energy ministers agreed to postpone the approval of a proposed gas price cap at €275/MWh to mid-December.

UK Natural Gas Futures Surge by 10% on Wednesday

Soybeans increased to a 9-week high of 1469 USd/Bu

Soybeans Hits 9-week High

UK Gas increased to a 8-week high of 350 GBp/thm

UK Gas Hits 8-week High

WTI crude futures were trading around $79 per barrel on Wednesday, supported by a bigger-than-expected drop in US crude inventories, while investors kept an eye on the upcoming OPEC+ meeting. API data on Tuesday showed that crude oil stockpiles dropped by about 7.9 million barrels in the week ended November 25, the most since the week ended July 2, 2021, and well above market expectations of a 2.487-million-barrel decline. Meanwhile, OPEC and its allies, including Russia, are expected to keep their output quotes unchanged at their next meeting on December 4. However, there has yet to be a consensus, with further production cuts still on the table. The US benchmark lost almost 8% in November amid persistent concerns about a potential global recession-driven demand downturn.

Crude Oil Hovers Around $79

Brent crude futures were trading around $84 per barrel on Wednesday, supported by a bigger-than-expected drop in US crude inventories, while investors kept an eye on the upcoming OPEC+ meeting. API data on Tuesday showed that crude oil stockpiles dropped by about 7.9 million barrels in the week ended November 25, the most since the week ended July 2, 2021, and well above market expectations of a 2.487-million-barrel decline. Meanwhile, OPEC and its allies, including Russia, are expected to keep their output quotes unchanged at their next meeting on December 4. However, there has yet to be a consensus, with further production cuts still on the table. The international benchmark lost almost 10% in November amid persistent concerns about a potential global recession-driven demand downturn.

Oil Steady, But Poised for Sharp Monthly Loss

Prices for iron ore cargoes with a 63.5% iron ore content for delivery into Tianjin rose to $103 per tonne in the end of November, the highest since mid-September, and set to close the month 26% higher as expansionary measures from China to sustain a slowing economy outweighed concerns about protests against COVID related restrictions. The country’s largest commercial banks agreed to extend $162 billion in fresh credit lines to private developers to fight the property sector’s liquidity crunch, and the PBoC further cut banks' reserve requirement ratio. Earlier, the national bond authority expanded a key financing program by $35 billion to support the sales of bonds after a period of defaults increased the cost of credit for residence builders. Still, iron ore prices remain 35% below their 2022 peak hit in March as strict pandemic curbs in China hamper demand and risk fresh political unrest.

Iron Ore Rises to Over 2-Month High

Steel rebar futures fell to below CNY 3,670 per tonne, the lowest in two weeks, and retreating further from the one-month high of CNY 3,757 from November 17th, as a sharp contraction in Chinese factory activity darkened the outlook for industrial demand. The NBS Manufacturing PMI pointed to the steepest contraction in the sector in seven months in November, as the new wave of Covid cases during the period pressured production and new orders. Pandemic-related protests at the end of the month have set an even gloomier stage for December, risking political turmoil amid the shutdown of multiple industrial hubs. Still, futures remain above the 30-month low of CNY 3,464, supported by measures to stimulate the steel-heavy construction sector. Banks agreed to extend $162 billion in fresh credit lines for private developers, and the PBoC cut the reserve requirement ratio by 25bps to turn up lending to the debt-ridden sector.

Steel Falls Sharply After PMI Data

Dutch front-month natural gas futures rose for a second day to above €135 MWh on Wednesday, the highest since October 14th, and extending the November gain to 10%, following a forecast of freezy weather starting next week that is expected to reduce inventories. Storages in the EU were 93.9% full as of November 27th, with Germany reaching 98.9% of capacity. Adding upward pressure, there are also processing issues at the Troll field in Norway and the UK’s Barrow North terminal. Meanwhile, Gazprom continued to send gas to Europe via Ukraine, and the company said it has decided against reducing supplies to Moldova, while reserving the right to lower or cut shipments if Moldova fails to make agreed payments. On the political front, EU energy ministers agreed to postpone the approval of a proposed gas price cap at €275/MWh to mid-December.

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08:05 · Dec 1

Commodity

EU Natural Gas Prices Continue to Rise as Cold Weather is Coming

08:00 · Dec 1

Commodity

Solar Energy Index Hits 10-week High

05:35 · Dec 1

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Gold Hits 2-Week High on Fed Slowdown Bets

03:23 · Dec 1

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Brent Holds Advance

03:22 · Dec 1

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Oil Holds Advance

00:05 · Dec 1

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Rubber is up by 5.02%

23:16 · Nov 30

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Silver is up by 5%

23:04 · Nov 30

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Silver Hits 25-week High

18:50 · Nov 30

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Gold Extends Gains

17:16 · Nov 30

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Gasoline Extends Gains

16:34 · Nov 30

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Heating Oil Prices to Remain Elevated

16:27 · Nov 30

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Natural Gas Futures Tumble by 5%

16:24 · Nov 30

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Cheese Hits 8-week Low

15:54 · Nov 30

Commodity

Natural gas is down by 5.07%

15:42 · Nov 30

Commodity

Brent Crude Extends Gains

15:41 · Nov 30

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Oil Jumps, Still Poised for Sharp Monthly Drop

15:30 · Nov 30

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Milk Hits 8-week Low

14:42 · Nov 30

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Baltic Exchange Dry Index Rises to Near 3-Week High

13:24 · Nov 30

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Palladium is up by 5.01%

12:05 · Nov 30

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European Natural Gas Prices Pick Up as Stockpiles Fall

11:31 · Nov 30

Commodity

TTF Gas Hits 6-week High

10:06 · Nov 30

Commodity

Soybeans Futures Climb to 10-Week High

09:47 · Nov 30

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UK Natural Gas Futures Surge by 10% on Wednesday

09:24 · Nov 30

Commodity

Soybeans Hits 9-week High

09:19 · Nov 30

Commodity

UK Gas Hits 8-week High

09:06 · Nov 30

Commodity

Crude Oil Hovers Around $79