On Friday, Brent crude strengthened in spite of the fact that the rest of commodities complex was seen rather lower. The front-month futures contract on Brent (ICE) gained two percent and the spread between the front-month and second-month contracts widened to 6 days high on a backdrop of supply disruptions in Nigeria.
Regarding the latest CFTC Commitment of Traders report, it showed further decline in speculative net positions in gold and copper while money managers’ net position in WTI futures was broadly unchanged (see the chart).
Base metals prices fell on Friday even though the data on China’s inflation and industrial production for October were rather supportive. On the other hand, Saturday’s data on imports rather disappointed as it showed a relatively steep decline in China’s copper imports in October (overall imports of the red metal hit 17-month low).
At time of writing, LME copper is hovering at 7600 USD per ton (USD/t) level.
Chart of the day:
Money managers’ bets on an increase in gold and copper prices further declined last week.