Tuesday, April 30, 2013

COMEX Gold Drops As Central Banking Decisions Loom

Gold......

slipped for a second session today as traders locked further gains after recent array of gains. COMEX futures had edged up above $1470 per ounce in last session as the metal extended its amazing run higher but dropped back today in the electronic session. The US dollar is off its two week low against the Euro. Major central banking decisions in US and Europe are pressing the metal lower in tune with other commodities. COMEX Gold is quoting at $1466.90, down half a dollar per ounce on the day.

Yesterday, US Treasury stated that it expects to pay off debt in the current quarter for the first time in six years. In a statement, Treasury said it now expects to pay off $35 billion of debt in the April-to-June quarter, compared to an earlier projection, given in February, that it would have to borrow $103 billion. This will be the first quarter that Treasury has paid off debt since April-to-June period 2007.

US stocks jumped yesterday with the DOW adding more than 100 points. US pending sales of homes edged up by 1.5% in March, reversing February's decline, the National Association of Realtors reported yesterday. The pending-home-sales index increased to 105.7 in March from 104.1 in February, and was up 7% from March 2012.

Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.

However, the demand-supply scenario remains in favor of the metal. Total recycled gold supplies went up nearly 34% to 1,625 tonnes in CY 2012 from 1,212 tonnes in CY 2008 due to the massive spurt in prices last year. This source of inflow is surely likely to see moderation this year given the 20% drop witnessed in prices from year to date.

The movement in today's session was worn out though a freakish up move of nearly Rs 200 in a span of minutes did a lot of damage to intraday sentiments. MCX Gold futures ultimately dropped, extending a break under Rs 27000 per 10-gram levels. The metal quotes at Rs 26902 per 10 grams, down Rs 249 per 10 grams or 0.91% on the day.

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Gold fails to hold above $1470

Gold.....

slipped on profit selling today as traders locked some gains after recent array of good gains. Prices had edged up above $1470 per ounce in last session as the metal extended its amazing run higher amid a weak US dollar and ideas that excellent demand from all the quarters is supporting the yellow metal after the prices tumbled to lows near $1300 per ounce around two week back. The US dollar tumbled to a near two week low above 1.3100 against the Euro. Good gains in US stocks made gold consolidate its gains. However, a mixed outing in Asian stocks pulled the metal off its recent highs. COMEX Gold is quoting at $1464, down $3 per ounce on the day.

US stocks jumped yesterday with the DOW adding more than 100 points. US pending sales of homes edged up by 1.5% in March, reversing February's decline, the National Association of Realtors reported yesterday. The pending-home-sales index increased to 105.7 in March from 104.1 in February, and was up 7% from March 2012. Economic data out earlier in the day showed that the Euro zone consumer confidence edged up to -22.3 in April, from -23.5 in March. These data pointers mostly kept the US dollar around 1.3100 mark against the Euro.

Gold had tumbled in a freakish manner a few days back. There were concerns that debt stricken European country Cyprus might have to sell gold holdings to raise finances. Traders fear that this would load up supplies in global markets in the short term. Massive unloading in Gold ETF's was also responsible for the worst crash in gold prices for three decades.

However, the demand-supply scenario remains in favor of the metal. Total recycled gold supplies went up nearly 34% to 1,625 tonnes in CY 2012 from 1,212 tonnes in CY 2008 due to the massive spurt in prices last year. This source of inflow is surely likely to see moderation this year given the 20% drop witnessed in prices from year to date.

The movement in today's session is showing signs that some selling is likely to emerge as traders wait for the key central banking decisions- starting with the FOMC meet today. MCX Gold futures tested under Rs 27000 per 10-gram levels, marking a loss of Rs 300 per quintal since yesterday. The metal quotes at Rs 27040 per 10 grams, down Rs 111 per 10 grams on the day.

Source by Commodity Insights

Aluminium Can Come Under Pressure As Day Progresses

Aluminium  ......
Aluminium can come under pressure as the day progresses as inventories can play a critical factor for the value. The Aluminium inventories are at all time highs and this is already creating supply glut in world markets.
The demand has been lower in China and world mining majors has already tightened their belt to reduce the amount of Aluminium produced. Untill the supply cuts are seen in Aluminium prices are expected to remain under corrective scanner of the bears. LME Aluminium inventories increased by 9100 tonnes to 5167725 tonnes on Monday.
On Tuesday, LME three month prices of Aluminium was trading 0.9 percent up at $ 1898.75 per tonne. MCX Aluminium expiry for April was trading at Rs 102.3 per kg, down 0.15 percent. The prices have tested a high of Rs 102.4 per kg and a high of Rs 102.2 per kg.
Source by Commodity Insights

LME Copper Three Month Prices Recover On Dollar Declines

Copper......

Dollar declines helped the metal prices to recover from their losses of last week. Copper three month prices settled with gains of $ 61.5 per tonne at $ 7116 per tonne. The prices are still up by $ 50 per tonne on Tuesday. COMEX Copper
for July expiry was quoting at $ 3.24 per pound up 0.014 cents.
Smart recuperation was seen as Dollar remained weak against the majors on Monday waiting for Federal Reserve statement and European Central Bank stance on interest rates. ECB can cut interest rates this time in the meet that is bullying the Euro sentiments. The greenback was trading at 1.3094 against the Euro on Tuesday after going down by 67 pips on Monday to close the trades at 1.3092.
US Federal Reserve stance on bond buying is keenly eyed by Copper stakeholders. Any indication that the Federal Reserve will continue with its bond buying will swell Copper and peers on liquidity.
Trading activity is a tad slow as China markets are closed for three day period on account of Labor Day celebrations. China exchanges will open for trading from 2 May 2013. The opening will be eagerly watched on account of release of Chinese Manufacturing data.
Meanwhile, Glencore noted announcement by Xstrata confirming that the High Court of Justice of England and Wales has today sanctioned the New Scheme to effect the Merger of Glencore and Xstrata.
The New Scheme and Merger are expected to become effective on 2 May 2013, subject to completion of the court process as set out in the New Scheme Document published by Xstrata on 25 October 2012.
In another news, BHP Billiton said that it signed a definitive agreement to sell its Pinto Valley mining operation and the associated San Manuel Arizona Railroad Company to Capstone Mining Corp. for an aggregate cash consideration of $ 650 million.
MCX Copper for far month June delivery closed at Rs 389.2 per kg, up 0.68 percent. The prices tested a high of Rs 391.7 per kg and a low of Rs 383.2 per kg. Supports for the contract are at Rs 388 and 386 per kg while resistance for the contract is at Rs 393.5 per kg.
Source by Commodity Insights

Monday, April 29, 2013

MCX Zinc Trades With Mild Losses

Zinc.....

MCX Zinc for April expiry was trading with mild losses of 0.20 percent. The prices were last seen at Rs 100.7 per kg. Decline in MCX Zinc contract is majorly on account of lackluster trend in whole metals pack. Other metals like Copper and Nickel were trying to recover while slow metals like Lead, Aluminium and Zinc were in losses. Zinc is used in galvanizing of steel produce.
Recently, ILZSG in its report has said that Zinc markets are expected to remain in surplus of 273000 tonnes in 2013. Refined Zinc metal production is expected to reach 13.25 million tonnes, which is up by 5.2 percent from last year. Global refined Zinc usage is expected to move up by 5.2 percent to 12.98 million tonnes in 2013.
Source by Commodity Insights

ICSG Report Pressurizes Copper

Copper......
International Copper Study Group (ICSG) report was expected to create ripples in the metals markets and this is exactly what has happened. The LME three month Copper prices declined by 1.2 percent to $ 7011.5 per tonne on Monday trades. Last week, Commitment of Traders had slashed their short positions of the metal in COMEX indicating that some respite can be seen in Copper selling.
International Copper Study Group (ICSG) has mentioned in its yearly forecast that Copper was in deficit of 400000 tonnes in the year 2012 but that was before the calculation of unreported inventories in warehouses of China. The biggest Copper consuming nation China had unreported inventories of 600000 tonnes.
Last week, COT report showed that total net short positions moved down by 78 percent to 5951 contracts this week from 27504 contracts on 16 April 2013. The total short positions declined by 7516 contracts taking total short contracts number to 46075 contracts 53591 contracts. Long contracts increased by 4197 contracts and were at 30284 contracts from 26087 contracts a week before.
MCX Copper was trading at Rs 380.2 per kg, down 0.55 percent. The metal tested a high at Rs 382.6 per kg and a low of Rs 379.4 per kg.
Source by Commodity Insights

Oil Starts Week On Downbeat Note

Oil.......
Crude oil futures
started the week on a downbeat note after recording gains of nearly 5% last week the biggest weekly advance since June.New York-traded crude oil futures ended Friday's session lower on concerns over a slowdown in demand from the U.S. resurfaced after official data showed that the economy grew less-than-forecast in the first quarter. Despite Friday's weak performance, Nymex oil futures rose 5% on the week, the biggest weekly advance since June. Oil prices came under pressure after the Commerce Department said U.S. gross domestic product expanded by 2.5% in the three months to March, missing expectations for growth of 3.0%.The International Monetary Fund said in a report released Monday showed that Asia Pacific economies will improve at a gradual pace in 2013 as the global economic outlook has brightened, but the risk of financial imbalance is growing in some parts of the region.The IMF said the region as a whole should manage 5.7% growth in 2013, lower than its most recent forecast in October of 5.9%, partly because the region-wide slowdown in 2012 was deeper than IMF officials had expected. The IMF estimated 2012 growth at 5.3%. The IMF defines the Asia Pacific region to include Australia and New Zealand and South Asian countries Bangladesh, India and Sri Lanka.Light sweet crude futures for delivery in June are trading down 38 cents at $ 92.62 per barrel on the New York Mercantile Exchange. It shed 0.8% Friday to settle the week at $92.89 a barrel by close of trade. Oil prices are up nearly 8% since hitting a four-month low of $85.91 a barrel on April 18. The coming week will bring another set of key U.S. indicators, including a government report on consumer spending on Monday, the consumer confidence index on Tuesday, monthly trade figures on Thursday, and the crucial non-farm payrolls data for April on Friday. April manufacturing indicators are also set for release from the U.S., China and the euro zone.Furthermore, the Federal Open Market Committee monetary-policy decision is due Wednesday, while the
Crude oil futures started the week on a downbeat note after recording gains of nearly 5% last week the biggest weekly advance since June.
New York-traded crude oil futures ended Friday's session lower on concerns over a slowdown in demand from the U.S. resurfaced after official data showed that the economy grew less-than-forecast in the first quarter.
Despite Friday's weak performance, Nymex oil futures rose 5% on the week, the biggest weekly advance since June. Oil prices came under pressure after the Commerce Department said U.S. gross domestic product expanded by 2.5% in the three months to March, missing expectations for growth of 3.0%.
The International Monetary Fund said in a report released Monday showed that Asia Pacific economies will improve at a gradual pace in 2013 as the global economic outlook has brightened, but the risk of financial imbalance is growing in some parts of the region.
The IMF said the region as a whole should manage 5.7% growth in 2013, lower than its most recent forecast in October of 5.9%, partly because the region-wide slowdown in 2012 was deeper than IMF officials had expected. The IMF estimated 2012 growth at 5.3% The IMF defines the Asia Pacific region to include Australia and New Zealand and South Asian countries Bangladesh, India and Sri Lanka.
Light sweet crude futures for delivery in June are trading down 38 cents at $ 92.62 per barrel on the New York Mercantile Exchange. It shed 0.8% Friday to settle the week at $92.89 a barrel by close of trade. Oil prices are up nearly 8% since hitting a four-month low of $85.91 a barrel on April 18.
The coming week will bring another set of key U.S. indicators, including a government report on consumer spending on Monday, the consumer confidence index on Tuesday, monthly trade figures on Thursday, and the crucial non-farm payrolls data for April on Friday. April manufacturing indicators are also set for release from the U.S., China and the euro zone.
Furthermore, the Federal Open Market Committee monetary-policy decision is due Wednesday, while the European Central Bank is expected by many economists to cut interest rates by a quarter-point on Thursday.
MCX May crude oil futures may open today's session near Rs 5050 levels with support around Rs 5000-4950 levels.
European Central Bank is expected by many economists to cut interest rates by a quarter-point on Thursday.MCX May crude oil futures may open today's session near Rs 5050 levels with support around Rs 5000-4950 levels.
Source by Commodity Insights

Saturday, April 27, 2013

Weekly Energy Wrap Up: Light Sweet Crude Spurts On Expected Summer driving Season Demand In US

Oil.....
WTI Crude Oil futures for May expiry closed at $ 93 per barrel, up by 5.3 percent in the week. Expectations of demand pick up ahead of summer driving season in US eradicated the worries relating to poor PMI numbers in China, Eurozone and US. Decline in gasoline stocks along with rise in crude stockpiles which were lower than expectations brought cheers back in the prices of Brent and West Texas Intermediate Crude oil futures. There are also expectations that the European Central Bank (ECB) will lower its interest rates in order to help its ailing economy. This can bring commodities demand from Eurozone.
Energy Information Administration (EIA) reported that Crude oil inventories for the adjusted annual rate of 2013 increased to 947000 barrels compared to expectations of increase by 1.5 million barrels. Meanwhile world's second largest consumer of Crude China reported that the Crude oil inventories increased by 2.2 percent in March.
China Crude oil imports were 22.78 million tonnes in March. China has also slashed its gasoline and diesel prices in order to bring down its inflation. The move was taken by National Development and Reform Commission (NDRC) after the fall in global crude prices
Source by Commodity Insights

Weekly Base Metals Wrap Up: After Multi Year Lows Copper Picks Up Steam

Copper......
LME three month Copper prices settled at $ 7099.5 per tonne, down 1.3 percent in the week.After a series of bets taking Copper to a multi year low, prices jumped in last few days of the week on account of bets that World Central banks will infuse liquidity in system to recover growth. Earlier in the week, major commodities were rattled after the weakness in PMI numbers of China. The HSBC PMI numbers for the month of April 2013 showed a reading of 50.5 compared to 51.6 in the month of March. China has been facing series of negative feedbacks on its economy this month.
The slowdown in imports of metals followed by downward revision of GDP numbers by IMF and now declining PMI numbers is all set to derail the trading sentiments of Base metals. Meanwhile, Goldman Sachs said that copper 12 month outlook was changed to $ 7000 per tonne from $ 8000 per tonne. Managed money funds further eased their bearish bets on Copper and entered into some fresh longs indicating that the heavy carnage in metals can see some halt.
COT report showed that long contracts were increased by 1338 contracts and were at 26087 contracts compared to 24749 a week before. Total net short positions therefore moved down by 16.5 percent to 27504 contracts in 16 April 2013 from 32942 contracts on 9 April 2013.
Source by Commodity Insights

Friday, April 26, 2013

China 10 Non Ferrous Metals Output Increases By 10.6 Percent On Y-O-Y Basis In Q1 2013

China combined output of the ten nonferrous metals rose 10.6% YoY to 9.49 million tonnes in the first quarter of this year, according to the latest statistics released by the National Development and Reform Commission.
The output of aluminum electrolytic rose 9.7% YoY to 5.22 million tonnes in the three-month period. The output of copper and aluminum sees a growth of 11.3% and 13.8%, respectively. The output of lead rose 16.1% YoY in the period, after decreasing 8.7% in the first three months of 2012. The output of zinc grew 6.5% YoY, after recording YoY decrease of 5.7% in the same period of last year.
In March, the prices of major nonferrous metals reflected a decrease from a month earlier. The average prices of copper and zinc futures on the Shanghai Futures Exchange stood at RMB 57,284 and RMB 15,262 per tonne, down 1.6% and 0.7% from the previous month, or declined 3.9% and 2.3% YoY, respectively. The average price of aluminum electrolytic was steady at RMB 14,636 per tonne, down 2.4% MoM or 8.5% YoY.
In the first two months, the nonferrous metal industry realized RMB 23.05 billion in profit, reflecting a growth of 1.9% YoY. The profit of nonferrous metal mining and dressing sector decreased 1.3% YoY to RMB 8.79 billion, while that of the nonferrous metal smelting and processing sector rose 3.9% to RMB 14.26 billion.
Source by Commodity Insights

Shanghai Copper Inventories Declines By 3 Percent On A Weekly Basis

Copper......
Shanghai Copper inventories have declined by 3 percent on a weekly basis. Shanghai futures exchange warehouse inventories declined by 6483 tonnes to 217180 tonnes for the week ending 26 April 2013. The fall in inventories of China can be seen as a uplift of Chinese demand at lower levels. On LME, inventories of Copper increased by 1125 tonnes to 619600 tonnes. The inventories has increased by 94.4 percent in 2013.
Source by Commodity Insights


Economic Buzz: Bank Of Japan Stands Pat

Bank of Japan held off announcing any new policy measures at its first meeting since unveiling a huge stimulus package this month aimed at stoking the limp economy.
In a brief, two-paragraph statement the central bank said its widely expected decision to stand pat was reached by a unanimous vote by its board.
Earlier Friday, data released showed Japan's core consumer prices, which exclude volatile prices of fresh food, fell 0.5 per cent on-year in March, highlighting the tough task ahead for the bank and the government.
This month, the central bank's new management team - hand picked by Prime Minister Shinzo Abe - embarked on a new era of huge spending by announcing a massive stimulus plan to drag the economy out of decades of stagnation.
At his first meeting as BoJ governor Haruhiko Kuroda, a staunch critic of the previous BoJ's efforts to kickstart the economy, said he would double the money supply and vowed no let-up in the fight against deflation that has hit private spending and corporate investment.
The also bank pledged to meet a two per cent inflation target within two years, a key aim of a government. The US dollar sank against the yen in Asia after the Bank of Japan's announcement.
Source by Commodity Insights

Lead Markets Will Be In Surplus Of 42000 Tonnes In 2013- ILZSG

Lead.....
Lead markets are expected to remain in surplus of 42000 tonnes in 2013. The International Lead and Zinc Study Group (ILZSG) has forecasted that the total mine production of lead in the world will be 5.43 million tonnes, up 3.5 percent. In China, markets are expected to grow a bit slow due to oversupply situation. China mine output is expected to grow by 4.7 percent.
Refined lead metal production of Lead is expected to reach 11.13 million tonnes, which is up by 4.8 percent from last year. China lead production is expected to increase by 6.2 percent. Refined metal production in Europe was expected to improve after restart of Glencore Kivcet plant. In Australia, production is expected to recover at Nyrstar port.
Global refined lead usage is expected to move up by 4.8 percent to 11.09 million tonnes in 2013. China usage is expected to grow by 6.7 percent. This will be majorly driven by rise in automotive and e-bike production. European demand is expected to increase by 1.9 percent after declining for two consecutive year's i.e 2011, 2012. US lead usage is expected at 1.2 percent.
Source by Commodity Insights

Oil Down On Profit Taking

Oil.....
Crude oil futures slipped in the Asia trading hours today as the traders booked profit after the commodity rallied nearly 5% this week. The weakness in the US dollar and gains in the Asian equities were of little help to the energy commodity.
Asian stock markets were mostly higher Friday after better-than-expected U.S. employment data boosted investor confidence, but Japan's benchmark fell a

mid an unwelcome drop in consumer prices.
Wall Street closed higher Thursday after the U.S. government reported the number of Americans seeking jobless benefits dropped last week by 16,000, suggesting that companies are cutting fewer jobs and that the U.S. may be headed for an uptick in job growth.
Hong Kong's Hang Seng rose 0.9 percent to 22,591.45. Australia's S&P/ASX 200 advanced 0.2 percent to 5,112.60. Benchmarks in Singapore, Taiwan, and New Zealand also rose. South Korea's Kospi fell 0.2 percent at 1,948.25.
But the Nikkei 225 in Tokyo slipped from a five-year high after Japan's consumer price index fell 0.9 percent in March from a year earlier. The result flies in the face of efforts by Prime Minister Shinzo Abe, who took office in December vowing to reverse a long bout of deflation, or falling prices, which has crippled economic growth.
Crude oil for June delivery is trading down 44 cents at $ 93.20 per barrel on the New York Mercantile Exchange. Yesterday, it rose $2.21, or 2.4%, to settle at $93.64 a barrel.
The advance got support from some crude-positive factors, including a rise in most Asian and European stock indexes and a falling U.S. dollar.
The dollar was sent deeper into a decline after the pound rallied on the back of better-than-expected U.K. GDP data. The report showed the U.K. economy expanded 0.3% in the first quarter, avoiding a triple-dip recession.
MCX May crude futures may open today’s session below Rs 5000 levels with support around Rs 4970 levels and Rs 4910 levels.
Source by Commodity Insights

Thursday, April 25, 2013

MCX Crude Tests Rs 5k But Fails To Hold On

Crude........
MCX Crude oil futures added modest gains today following a recovery in world prices. The WTI futures extended a rise from multi month lows. The commodity stayed mostly supportive in Asia on positive movement in equities and added to its overnight gains as traders eyed a smaller than expected increase in US weekly crude inventories along with a big decline in gasoline stockpiles. Prices neared $92 per barrel today and currently trade at $91.78 per barrel, up 35 cents per barrel on the day.

Yesterday, the U.S. Energy Information Administration reported crude supplies rose by 900,000 barrels for the week ended April 19. Motor gasoline supplies dropped by 3.9 million barrels, but distillate stockpiles added 100,000 barrels, the EIA data showed. Forecasts called for a decline of 700,000 barrels in gasoline stockpiles and a fall of 450,000 barrels in distillate supplies.

The Euro gained today, extending its reversal to near 1.3100 mark against the US dollar as yields on European sovereign bonds continued to drop. In a key economic data release, The UK economy avoided falling back into recession. The country's GDP increased by 0.3% in Q1 2013 compared with Q4 2012. GDP was 0.4% higher in Q1 2013 than in Q3 2011 and therefore has been broadly flat over the last 18 months according to the Office for National Statistics today.

Oil was hurt last week, tanking in line with commodities like Gold, Silver and Copper. The local MCX May crude futures edged up towards Rs 5000 per 10 grams and even managed to test the watershed mark but failed to hold on above it. The contract currently trades at Rs 4973, up Rs 11 per barrel on the day or 0.22% with 3.61% increase in the open interest.

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U.S Gold Surges Near Ten Days High On Strong Buying

Gold......

extended the previous session's strong gains on Thursday with futures hitting nearly ten days high, as prices remained supported amid indications of surging demand for the precious metal. The reports of reserve buying from Turkey, Russia and the International Monetary Fund supported. Indeed, the yellow metal shot up to the $1448.25 level earlier today, before easing back towards $1445.95 per oz.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery trades at $1,446.15 a troy ounce, up 1.63% on the day. Silver quotes at $23.33, up 2.18% from last close. Copper and Crude Oil futures were trading with moderate gains in the after hours U.S session. Euro trades at $1.3073, up 0.43% from last close. Investors will receive weekly U.S. jobless claims data later Thursday. Reports on first-quarter gross domestic product and consumer sentiment in April are slated for release Friday.

Local gold prices traded near seven days high with MCX Gold June contract hitting sessions high at Rs 26,725, up Rs 303 or 1.16% from last close. The counter may edge up near Rs 27 k and support is seen at Rs 26,485 level. MCX May silver quotes at Rs 43,375, up Rs 480, after hitting session high near Rs 43,600 level.
 
Source  by Commodity Insights

Oil Slides Post Weak China Manufacturing

Oil.....

Crude oil futures slid in tandem with the Asian equities after the HSBC data released Tuesday showed that China's manufacturing-activity growth has slowed in April.
Hong Kong stocks fell Tuesday, with the pace of the benchmark's loss accelerating after a weaker-than-expected preliminary April reading in Chinese factory-activity figures from HSBC. The Hang Seng Index fell 128 points, or 0.6%, to 21,915.77. The HSBC Flash Manufacturing PMI Index fell to 50.5 from 51.6 in March.
June crude oil futures are trading at $ 88.72 down 47 cents a barrel on the New York Mercantile Exchange. May oil contract rose 75 cents, or 0.9%, to settle at $88.76 a barrel yesterday. The May contract expired at the close of Monday’s trading session.
Prices finished last week with a loss of 3.6%, marking the third consecutive week of declines for the commodity, even though they tallied a gain of 1.8% on Thursday and Friday.
Oil prices on Friday rose after a Venezuelan official from the Organization of the Petroleum Exporting Countries reportedly said late Thursday that the cartel may hold an emergency meeting to discuss the recent drop in oil prices.
On Monday, Ali Obaid al-Yabhouni, the United Arab Emirates’ governor for OPEC, said that the group’s oil output ceiling would remain at 30 million barrels per day, as that level was “sufficient.”
He also said he didn’t expect the cartel to hold an extraordinary meeting because the next scheduled one was coming up soon. It’s set for May 31.
The price pressure for oil Monday included disappointing U.S. existing-home sales data for last month and a drop in earnings for Caterpillar Inc., as both feed a weak demand outlook. U.S. existing-home sales for March fell 0.6% to a seasonally adjusted annual rate of 4.92 million.
MCX May crude oil futures may open today’s session near Rs 4800 levels with support around Rs 4780-60 levels and resistance near Rs 4840 levels.
Source  by Commodity Insights

Gold Steady But Resistance Seen

Gold.....

Gold futures are trading steady in the early European session today, however it may face a resistance near $1450 an ounce levels.
European stock markets headed for a fifth straight day of gains on Thursday, with investors increasingly hoping for a rate cut at the European Central Bank's policy-setting meeting next week after a disappointing string of data.
Investors will receive weekly U.S. jobless claims data later Thursday. Reports on first-quarter gross domestic product and consumer sentiment in April are slated for release Friday.
Gold for June delivery is trading higher by $20 to $1,443 an ounce in mid electronic trading hours. The metal should face a resistance near $ 1450-55 levels.
The weak US economic data also supported the metal. On Wednesday, the contract rose $14.90, or 1.1%, on the Comex division of the New York Mercantile Exchange. The gain came as orders for U.S. durable goods fell by a seasonally adjusted 5.7% in March
The generally soft data followed reports that manufacturing activity slowed toward the end of the first quarter, reinforcing worries about sluggishness in the broader U.S. economy.
MCX June gold futures are trading near Rs 26650 levels. The counter is expected to face a resistance near Rs 26700 levels today and it has a good support near Rs 26400 levels.
Sourced  by Commodity Insights

Aluminium Recovers For The Second Day

Aluminium.....

Aluminium recovered for the second straight day as traders started to build some long positions after a debacle this week. Heavy correction in the metals has increased speculation for buying in metals. LME three month Aluminium delivery contract was trading at $ 1911 per tonne, up 0.52 percent.
In coming days, the prices have resistances at $ 1950 and $ 2000 per tonne levels. On the lower side, it is free to move towards $ 1800 per tonne and $ 1700 per tonne levels.
Indian Aluminium for April expiry was trading at Rs 102.4 per kg, up 0.35 percent. The prices are expected to rally towards Rs 102.95 and 103.5 per kg. Support for the metal is at Rs 101.9 per kg.
The prices of LME Aluminium dropped to a eight month low this week. Heavy production increases in the world and lower demand appetite of China bombarded the metal to eight month lows of $ 1841.5 per tonne in April.
The inventories in LME warehouses are almost near 5.2 million tonnes This is the reason that one has seen decline in world Aluminium production in last three months though from previous year levels the production is still up. Significantly high inventories are making life tough for markets.
Source by Commodity Insights

Commodities Buzz: Lower Nickel Prices Forces Baosteel To Slash Prices of HRC

Nickel.......
Baosteel Stainless, the second largest stainless producer in China announced to cut its domestic prices for stainless steel coils by RMB200-RMB1000 per tonne for May deliveries due to lower nickel prices.
The company decided to reduce its domestic prices for 304 grade hot rolled coils and cold rolled coils by RMB 800 per ton and RMB 1000 per ton respectively. Baosteel has also decreased its domestic prices for ferritic cold rolled coils by RMB200 per ton.
Source by Commodity Insights

Tuesday, April 23, 2013

LME Copper Three Month Prices Near Three Year Low

Copper...........


three month delivery reached near its three year low today. The prices tested a low of $ 6830 per tonne and was trading at $ 6848 per tonne when last checked. The rise in inventories data added to the pressure in the metal that was already lurching towards ground after China PMI numbers.
LME Copper inventories increased by 8525 tonnes on Tuesday to 621600 tonnes. MCX Copper was trading at Rs 371.6 per kg, down 0.9 percent. China HSBC PMI numbers for the month of April 2013 showed a reading of 50.5 compared to 51.6 in the month of March.
Meanwhile, Germany manufacturing activity in April declined to four month low. Research Group Markit manufacturing Purchase Managers Index fell to a seasonally adjusted 47.9 in April compared to reading of 49 in March 2013. This is a preliminary reading which can be revised in another assessment. Eurozone PMI fell to a four month low of 46.5 in April from final reading of 46.8 in March 2013. Reading below 50 indicates contraction in manufacturing.
In currency segment, Dollar recovered against the Euro for the third straight day and traded at 1.2989, up 0.6 percent from last night. The grim PMI numbers of Eurozone and Germany propelled buying in US Dollar. Indian Rupee declined by 0.4 percent against the Dollar and was last seen at 54.35.
Meanwhile, Caterpillar showed sharp decline in profits after being affected by weak mining and construction demand. The company reported a decline of 45 percent in the first quarter earnings demand. Major earthmoving equipment maker posted a net income of $ 880 million in the first three months of 2013. The company has warned that the conditions in mining business have declined considerably. The state of affairs in mining globally has been affected by slowdown in demand.
Among other metals, lead futures for April expiry on MCX was trading at Rs 107.7 per kg, down 0.32 percent. The metal is expected to get supports at Rs 107.2 and Rs 106.5 per kg. Resistance for the contract is at Rs 108.5 per kg. LME Lead for three month delivery was trading at $ 1996 per tonne, down $ 19 per tonne.
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Monday, April 22, 2013

Gold On A Roll, Good Gains Emerge In Global And Local Markets

Gold..........

MCX Gold futures added handsome gains as the global prices extended their recovery today. The first session of the week saw COMEX Gold add around three percent on ideas that the global fund managers are trimming their recent pile of shorts after prices tanked to two and half year lows last week. The key developments over the weekend supported gold.

A statement from the G-20 meeting late Friday was interpreted as a wider international support for Japan's aggressive easing measures. COMEX Gold futures added impressive gains in tune with other commodities as well as broad equity indices throughout the electronic session today and currently quite at $1433.30, up $37.70 per ounce.

The Group of 20 major economies agreed in their recent meeting that Japan's huge monetary easing measures unveiled this month were necessary to boost the country's stagnant economy. In a statement following their meeting in Washington, G20 finance chiefs said the policy actions are intended to stop deflation and support domestic demand. This provided good support to equities in Asian trades. European markets followed these gains after Italian parliament over the weekend re-elected Giorgio Napolitano as president, following weeks of political uncertainty.

The gains in equities meant that the beaten down commodities space was back in business. Oil carved out good gains from lows and COMEX Gold extended a break above $1400 per ounce levels, hitting $1440 per ounce in the course of the session. Local MCX Gold futures were also on a roll, benefiting from the surge in global prices.

The retail spot gold market has witnessed very good buying in the last week, confirming ideas that the frenzy of buyers would return in case the metal witnesses a further correction. The benchmark MCX futures broke above Rs 26400 per 10 grams and currently trade at Rs 26455, up Rs 407 per 10 grams or 1.57% on the day. The open interest is up by a massive 8%.

Source  by Commodity Insights

Shanghai On-Warrants Data- 22 April 2013

Source  by Commodity Insights

Gold Advances Further With Dollar & Equities

Gold.....

advanced more than $30 an ounce accompanied by rally in the US dollar and the European and Asian equities.
The U.S. dollar rose against Japan’s currency Monday, flirting with the 100-yen level after financial officials from the world’s top economies refrained from criticizing Japan’s weakening of the yen through its monetary-policy program. The dollar rose to ¥99.82, up from ¥99.52 late Friday in North American trade.
European stock markets opened higher on Monday, taking inspiration from a strong session in Asia, where markets rallied as the yen tumbled after a statement from the Group of 20 major economies. Germany's DAX 30 index added 0.8% to 7,517.28, while France's CAC 40 index put on 0.7% to 3,678.84. The U.K.'s FTSE 100 index added 0.7% to 6,330.59.
A statement from the G-20 meeting late Friday was interpreted as a wider international support for Tokyo's aggressive easing measures, which recently have sent the yen to multi-year lows.
June delivery gold futures are trading up $29 at $1424 per ounce on the Comex division of the New York Mercantile Exchange. It should find support at $1,322 levels and a resistance near $1430 levels.
In the week ahead, investors will be awaiting Friday’s U.S. data on first quarter growth. Investors will be closely watching this data as they attempt to gauge the strength of the U.S. recovery. Any improvement in the U.S. economy could scale back expectations for further easing from the Federal Reserve.
MCX June gold futures are trading up more than Rs 250 at Rs 26305 per 10 grams. It should face a resistance near Rs 26400-500 levels.
The festive season should also support the Indian gold prices in the physical markets. India celebrates Akshaya Tritiya, a key gold-buying festival, next month, while the wedding season will continue until early June. So far this month, the Indian gold prices have come down more than Rs 4000 per 10 grams and the silver prices have dived nearly Rs 10000 or 19%.
Source by Commodity Insights

Thursday, April 18, 2013

Copper Remains Below $ 7000 On LME

Copper.....

LME Copper three month prices slipped below $ 7000 per tonne on account of anxiety in international markets relating to demand. The European car sales data that declined for the 18th consecutive month coupled with downward revision of Aluminium prices by UC Rusal dented markets further. LME Copper prices were trading at $ 6995 per tonne on Thursday, down from $ 7090 per tonne.
European new car registrations declined by 10.2 percent to 1.307 million vehicles from last year levels. Data from European Automobiles Association said that the biggest decline in car markets was in Germany where car registrations declined by 17.1 percent followed by France where itr was down by 16.2 percent. For the first quarter of 2013 as a whole, new car registrations across the 27-member European Union fell by 9.8 percent, to 2.989 million vehicles.
Meanwhile, United Co. Rusal has cut forecast for aluminum prices to $ 2100- $2200 a metric ton for the year 2013 compared to earlier estimates of $ 2200-2300 per tonne. Rusal has said global markets have been dragged down by record-high inventories and that around 1.5 million tons of supply needs to be cut before the situation stabilizes. The company has said global aluminum output is forecast at 50 million metric tons this year, so about 3% of supply must be shuttered.
Inventories data released today showed that the Aluminium and Copper stocks increased by 6100 tonnes and 3825 tonnes respectively. Copper stocks have reached 612350 tonnes while Aluminium stocks are at 5194575 tonnes.
In a separate report by World Bureau of Metal Statistics (WBMS), said that World copper markets were in surplus of 76200 tonnes in the month of February 2013, as compared to a surplus of 52800 tonnes in January 2013. Copper was in surplus of 34000 tonnes in whole of 2012.
Refined Production of Copper was 1.643 million tonnes in February 2013, compared to 1.68 million tonnes in January 2013. Production of refined copper in Jan-Feb 2013 was 3.32 million tonnes, compared to 3.26 million tonnes in Jan-Feb 2012. Indian refined copper production in Jan-Feb 2013 was 111800 tonnes compared to 121100 tonnes in Jan-Feb 2012.
World refined copper consumption was 3.19 million tonnes in first two months of the year compared to 3.32 million tonnes in Jan-Feb 2012. Chinese refined copper consumption was 1.31 million tonnes in Jan-Feb 2013, compared to 1.42 million tonnes in Jan-Feb 2012.
Multi Commodity Exchange (MCX) Copper was trading at Rs 376 per kg, down 1.3 percent. The prices tested a low of Rs 368.8 per kg in the day. Supports for the contract are at Rs 368 and 365 per kg levels.
Aluminium was trading at Rs 101.7 per kg on MCX, up 0.10 percent. The prices tested a high of Rs 102 per kg and a low of Rs 106.4 per kg so far in the day. LME Aluminium was trading at $ 1901 per tonne, up $ 14 per tonne from last night.
Source  by Commodity Insights

Copper Was In 76200 Tonnes Surplus In February 2013 Says WBMS

Copper........
World Bureau of Metals Statistics (WBMS) has come up with its numbers for major metals. The agency has said that World copper markets were in surplus of 76200 tonnes in the month of February 2013, as compared to a surplus of 52800 tonnes in January 2013.
Copper was in surplus of 34000 tonnes in whole of 2012. On a cumulative basis, copper markets recorded a surplus of 129000 tonnes in January-February 2013 compared to a deficit of 67500 tonnes in the corresponding period last year.
The closing stocks at the end of February were 1.18 million tonnes, up 12 percent from the year ending 2012 when stocks were 1.02 million tonnes.
World mined copper production in February 2013 was 1.383 million tonnes, down 4 percent from 1.44 million tonnes in January 2013. In Jan-Feb 2013, World mined copper production was 2.82 million tonnes across globe compared to 2.59 million tonnes in Jan-Feb 2012.
Refined Production of Copper was 1.643 million tonnes in February 2013, compared to 1.68 million tonnes in January 2013. Production of refined copper in Jan-Feb 2013 was 3.32 million tonnes, compared to 3.26 million tonnes in Jan-Feb 2012.
Indian refined copper production in Jan-Feb 2013 was 111800 tonnes compared to 121100 tonnes in Jan-Feb 2012. Production of refined copper in February was 55900 tonnes, unchanged from Jan. China refined copper production was 923900 tonnes in Jan-Feb 2013 compared to 833600 tonnes in similar period last year.
Meanwhile, World refined copper consumption was 3.19 million tonnes in first two months of the year compared to 3.32 million tonnes in Jan-Feb 2012. Chinese refined copper consumption was 1.31 million tonnes in Jan-Feb 2013, compared to 1.42 million tonnes in Jan-Feb 2012.
Refined consumption in US declined by 15 percent to 252000 tonnes in Jan-Feb 2013 compared to 298000 tonnes in similar period last year.
Source  by Commodity Insights


Wednesday, April 17, 2013

Bulls Takes Divorce From Gold

Gold futures
hovered around in a range in the early London trades today, after having painful fall of more than $200 which finally separated the bulls from gold.
The decade old relation between the bulls and gold seem to be broken now as the yellow metal tumbles below the phenomenal $1330 an ounce in the international markets and Rs 25300 per 10 gram levels in the domestic markets. The breakdown in the gold prices has relieved the Indian gold buyers luckily when the festive season comes near.
India celebrates Akshaya Tritiya, a key gold-buying festival, next month, while the wedding season will continue until early June. So far this month the Indian gold prices have come down more than Rs 4000 per 10 grams and the silver prices have dived nearly Rs 10000 or 19% so far in the month of April.
Gold for June delivery are trading down $5 to trade at $1,382 an ounce during Europe trading hours. It resumed their decline which has already pulled the front-month contract down by more than 8% so far this week.
On Tuesday, gold rose $26.30, or 1.9%, on the Comex division of the New York Mercantile Exchange. The advance followed two consecutive sessions of declines which stripped prices of more than $200 an ounce. Gold prices were mauled Monday, marking their largest one-day loss since the 1980s, as they plunged $140.30, or 9.3%, to $1,361.10 an ounce.
Sentiment in gold has suffered after recent cuts to price forecasts for the metal, as well as outflows from gold exchange-traded products. Goldman Sachs and Morgan Stanley have each cut their price forecasts for gold for this year and next.''
Goldman Sachs on Tuesday also cut its short gold recommendation to $1,400, saying exchange-traded-fund holdings show “acceleration in the liquidation of length, which points to a broad-based selloff extending beyond the futures markets, with potential more room to go.”
Source by Commodity Insights

Gold Down Slightly On Profit Taking

Gold.....
Gold futures are trading down slightly in the Asia electronic session today on profit taking after posting gains of nearly 2% in the US floor trading.
Gold for June delivery is trading down $8 at $ 1379 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it rose $26.30, or 1.9%, to settle at $1,387.40 an ounce.
On Monday it plunged $140.30, or 9.3%, to $1,361.10 an ounce. The slide marked the precious metal’s biggest one-day percentage drop since February 1983. Gold’s one-day dollar drop was the biggest since January 1980 and the second-largest in its history.
The bulk of the selloff occurred on Monday, which marked the largest one-day loss since the 1980s and prompted an increase in the amount of money investors needed to trade gold-futures contracts. Including Friday’s loss, the metal saw a two-session drop of more than $200 an ounce, or 13%.
U.S. economic data Tuesday showed a deceleration in consumer inflation. They also showed a jump in construction of new homes and an increase in industrial production.
Sentiment in gold has suffered after recent cuts to price forecasts for the metal, as well as outflows from gold exchange-traded products. Last week, the investment bank lowered its average gold-price forecast for 2013 to $1,545 an ounce, a level the metal took out on Friday.
On Tuesday, Goldman cut its short-term stop on gold to $1,400 an ounce and said recent exchange-traded-fund holdings show “acceleration in the liquidation of length, which points to a broad-based selloff extending beyond the futures markets, with potential more room to go.”
MCX June gold futures may open today’s session near Rs 25800 levels with resistance near Rs 25900-26000 levels and support near Rs 25700 levels.
Source by Commodity Insights

Tuesday, April 16, 2013

Oil Losses Continue in Tandem With Equities

Oil.....

Crude oil losses continued in tandem with negative movement in the Asia equities following the loss of momentum in the Chinese economy and the worst sell-off in five months on Wall Street.
The Hong Kong and Shanghai stock markets fell after a string of brokerages cut their economic outlook for China, while Japanese shares also suffered from further yen appreciation as investors pulled away from risky assets.
Oil futures settled with a loss of nearly 3% on Monday, with weaker-than-anticipated quarterly economic growth and monthly industrial production numbers from China adding to festering worries about global demand for the commodity.
May crude oil futures are trading down $1.70 at $ 87.01 per barrel on the New York Mercantile Exchange. Yesterday, it fell $2.58, or 2.8%, to settle at $88.71 a barrel after a low at $87.86.
Oil’s decline on Monday was also part of a broad commodity selloff, with gold dropping more than $140 an ounce.
China said gross domestic product rose 7.7% in the January-March quarter, slower than growth of 7.9% in the fourth quarter. The report of slower activity for the major energy consumer came after the International Energy Agency and the Organization of the Petroleum Exporting Countries reduced each of their own global oil-demand estimates for the year slightly. Oil futures fell by 1.5% last week.
Among the data from China on Monday, March industrial production increased 8.9% from the year-earlier period. The growth was the weakest in more than a year, slowing from a 9.9% average rise for the January-February period.
MCX April crude oil futures may open today’s session near Rs 4800 levels with support around Rs 4700 and Rs 4600 levels.
Source by Commodity Insights

LME Metals Prices- 15 April 2013


Source by commodity insights

Monday, April 15, 2013

LME Inventories Data- 15 April 2013

Source by Commodity Insights

Oil Dumps Below $89 On Weak China Data

Oil...

dumped below $89 a barrel in the Asia electronic session today, after China reported weaker-than-expected economic growth and industrial production, leading investors to reassess the outlook for the region’s largest economy.
Asian markets fell sharply Monday after the sluggish Chinese economic indicators added to the selling pressure in markets already weighed by a strong rebound in the yen, as well as a commodity-price slump and weak cues from Wall Street on Friday.
Chinese economic data released Monday, including first-quarter growth. The Shanghai Composite slid 0.8%, and Hong Kong’s Hang Seng Index gave up 1.3% after figures showing the Chinese economy expanded 7.7% in the first quarter, compared to the year-earlier period.
Gross domestic product for the January-March quarter rose 7.7% from a year earlier, the National Bureau of Statistics said, weakening from 7.9% growth in the fourth quarter,
Among the March data, industrial production increased 8.9% from the year-earlier period. The growth was the weakest in more than a year, slowing from a 9.9% average rise for the January-February period, which China’s statistics bureau reports as one figure due to seasonal distortions from the Lunar New Year holiday.
March retail sales rose 12.6%, improving from 12.3% year-on-year growth in the January-February period, but far less than the 15.2% gain in December. Results for urban fixed-asset investment (FAI) — a gauge of construction and infrastructure spending — also showed slower growth. Reported on a year-to-date basis, FAI rose 20.9% in January-March from the comparable year-earlier period, down from 21.2% in January-February alone.
NYMEX light sweet crude oil futures are trading down more than $2 at $ 88.98 per barrel in Asia electronic session today. MCX April crude oil futures may open today’s session near Rs 4870 levels with support near Rs 4800 levels.
Source  by Commodity Insights

Friday, April 12, 2013

Sharp Fall In Gold Below $1550 Weighed By Strong Greenback

Gold............ 
Gold futures tumbled sharply below a key level of $1,550 again, as the dollar climbed and U.S. stock futures fell. U.S. stock market futures and oil prices were also moving lower ahead of reports due later Friday on U.S. retail sales and producer prices in March. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery quotes at $1,547.50, down $17.05 or 1.10%, after falling near $1,544 per ounce. Silver quotes at $27.30, down 0.39 or 1.41% from last close. Euro quotes at $1.31, down 0.29% from last close.
Gold futures dipped, despite a lower GDP growth
outlook for the U.S. from the International Monetary Fund. The IMF released a draft of its World Economic Outlook, in which it pared estimate for U.S. GDP growth this year to 1.7% from a previous estimate of 2%. The IMF also cut its estimate for global growth to 3.4% from 3.5%. On Wednesday at a speech given before the Economic Club of New York, IMF Director Christine Lagarde urged global central banks to keep their ultra-loose monetary policies in places to support economic growth. Loose monetary policy has also been seen as supporting gold over the past few years and some traders are skittish that if the Federal Reserve winds down or ends quantitative easing this year, gold futures will be hammered.
Europe-area problems appeared to be heating up again on Friday after Cyprus President Nicos Anastasiades said on Friday that he will ask the European Union for extra assistance to get his struggling nation back on track, as the bailout costs appear to be higher than expected, according to AFP. A report quoting German authorities said the amount of aid is “not up for discussion.” The financially troubled country has reportedly agreeing to sell excess gold reserves to help with its bailout efforts.
Investors this week heard from Goldman Sachs, which dropped its gold forecast for 2013 to $1,545 an ounce, down from a prior forecast of $1,610. Also, minutes of the latest Federal Reserve meeting showed members were at odds about when to stop quantitative easing.
MCX June delivery Gold quotes at Rs 29039, down Rs 145, from last close, after hitting low at Rs 28,945 level and the supports are seen at Rs 28,750, Rs 28,650 and resistance is at Rs 29150, Rs 29250 level. Silver May contract quotes at Rs 51261, down 0.82% from last close.

Source by Commodity Insights

Commodities Buzz: Xstrata Koniambo Nickel Project Produces First Metal


Mining major Xstrata reported that the Koniambo Nickel Greenfield project in New Caledonia worth $5 billion, which has been under construction for the past six years has produced first Nickel metal.
First metal production signals the start of Koniambo Nickel as a multi-decade, tier one asset with long-term cash costs at the bottom of the second quartile. At peak production the mine will further cement New Caledonias position as one of the most important nickel producers in the world and provide steady employment for approximately 800 workers, with a focus on local employment, and indirect employment for thousands of others.
Ian Pearce, Chief Executive of Xstrata Nickel, said: �All components of the mining and smelting process have now been successfully tested, leading to production of metal from Line 1. The production of first nickel metal at Koniambo after six years of complex design and construction is a huge achievement and a source of great pride for all of our employees. We are on track to deliver the full production rate of 60,000 tonnes per annum by the end of 2014 as scheduled, while maintaining excellence in terms of environmental and safety performance at this world-class industrial complex.�
Source by Commodity Insights

Commodities Buzz: IEA Cuts Oil Demand

Energy......
The International Energy Agency once again cut its outlook for global oil demand Thursday, but warned significant supply risks continue to threaten the market.
The downward revision by the Paris-based consumer group reflects similar moves by other industry forecasters earlier this week as concerns over the state of the global economy continue to weigh on demand expectations.
In its monthly oil market report published Wednesday, the Organisation of Petroleum Exporting Countries downgraded its forecast of world oil demand growth by 40,000 barrels a day for 2013, while the U.S. Energy Information Administration cut its outlook by 140,000 barrels a day.
In its closely-watched monthly oil market report published Thursday, the IEA cut its expectations of oil demand growth to 795,000 barrels a day down from 820,000 barrels a day last month.
The decline reflects exceptionally weak demand from industrialized countries, particularly in Europe where consumption in 2013 is expected to be the lowest since the 1980s, the IEA said.
The bleak economic picture is reflected in demand for oil products, with initial statistics showing that gasoline consumption may have outpaced consumption of gasoil--commonly used in industrial processes--last year and is expected to do so again this year; helped by strong demand for the transport fuel in China and Saudi Arabia, the IEA said.
However, gasoil demand growth is expected to outpace gasoline demand growth once more in 2014, it added.
Since early February the price of the European benchmark Brent crude has fallen around 10% to hover around $105 a barrel, its lowest level since November last year.
Nonetheless, the IEA warned that significant risks to the market remain.
"There are signs that some of the recent easing of upward price pressures could be relatively short‐lived," the IEA said in its closely-watched monthly oil market report.
For the first time in months, the agency cut its expectations of non-OPEC supply growth for the year as infrastructure maintenance, extreme weather and geopolitical insecurity affected output in the first quarter of the year.
The IEA also highlighted significant risks to OPEC supply.
Nigerian oil production fell to a four-month low in March and could fall further following a resurgence in oil-theft-related damage to pipelines and renewed threats of militant attacks against the country's oil infrastructure, the IEA warned.
The IEA also warned that insecurity in Libya is threatening to derail the country's production outlook. Output fell by 40,000 barrels a day last month to 1.36 million barrels a day, according to the IEA's data. That is 150,000 barrels a day lower than the official figure provided by Libya to OPEC in its most recent report, published Wednesday.
Iranian output also remains constrained by strict Western sanctions with exports falling to 1.1 million barrels a day in March, down from 1.26 million barrels a day in February, the IEA said.
Source by Commodity Insights