OIL MARKET ON CONFUSED ......WHY?

ALUMINIUM:

China Aluminum International Trading Co. (Chalco Trading) cut aluminum prices it offered in major markets today, it said on its WeChat.

COPPER:

The Goldman report tracked top 20 copper producing companies which collectively account for around 60% of global copper production. These firms are expected to raise their production by around 15% in coming months.

LEAD:

LME lead may fluctuate around $ 1,820 per tonne next week with resistance at the 20-day moving average.

LME lead will narrowly range USD 1,815-1,835/mt during Asian trading hours Friday.

ZINC:

LME zinc is expected to continue to rebound to $2,400 per tonne in the medium to long term, SMM predicts, citing supply tightness.

A large number of zinc downstream processors were forced to slash output or shut down due to the upcoming G20 Summit to be held in Hangzhou in early September, SMM reports.

OPEC & IEA Report Keep Oil Markets Confused

The IEA also noted that it expects global demand growth will decline from 1.4 million barrels per day in 2016 to 1.2 million bpd in 2017.

IEA Oil Market Report for August, global oil demand growth is expected to slow down in 2017. 

Additionally, the IEA expects non-OPEC production to drop by 900,000 this year, before a 300,000 bpd rebound in 2017.

Inside the OPEC, oil output has also seen an increase as Saudi Arabia pushes output to peak levels and Iraq increases oil pumping figures.

Oil prices rose nearly 5% on Thursday after comments from the Saudi oil minister about possible action to stabilize prices triggered a round of buying and the International Energy Agency forecast crude markets would tighten in the second half of 2016.

Saudi energy minister Khalid al-Falih said OPEC members and non-members would discuss the market situation, including any action that may be required to stabilize prices, during an informal meeting on September 26-28 in Algeria.

Iran’s refusal to join in a so-called production freeze.

 CAPITALSTARS