Commodities struggle and oil declined - ANZ
|Analysts at ANZ explained that commodities struggled as a stronger USD and weak fundamentals saw investor appetite wane. Oil declined as doubts emerged that producers will agree to a production freeze.
Key Quotes:
"The UAE oil minister hinted that the oil market should achieve stability soon. According to reports on Bloomberg, Iran also reiterated it wouldn’t participate in a freeze in output until it regained its share of OPEC production seen three years ago.
The physical iron ore market remained quiet, with prices relatively unchanged. The forced closure of steelmaking capacity ahead of next week’s G20 summit in Hangzhou has seen enquiries shrink in recent days.
This was despite a fall in stocks of iron ore held at ports in China, which fell 1.9 million tonnes to 94.9mt last week. The stronger USD and increasing bets on a Fed rate hike saw gold hit a one month low. With the London Metal Exchange closed due to a public holiday, base metals were unchanged."
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