"Crude oil was weaker. Brent gave up all the gains achieved leading into the OPEC meeting last Friday after members couldn’t come to an agreement regarding any production cuts. In fact, the formal production target was not even discussed, essentially signalling to the market that members would continue production at individual requirements. With Iran exports likely to start increasing next year, this increases the likelihood of further weakness in crude oil markets.
Base and precious metal prices were stronger. A general pickup in sentiment towards risky assets saw prices rise across the board in thebase metals complex. Copper inventories continued to fall, and are now at their lowest levels for the year. Nickel prices received a boost after Eramet announced it would end production of nickel matte at its New Caledonia ferronickel smelter due to low prices.
Iron ore markets were weaker. The Metal Bulletin index closed at just above USD40/tonne after a strong build in inventories and weak steel markets continued to weigh on the iron ore market. Chinese post stocks jumped 1.23 million tonnes last week and now stand at 91.3 million tonnes. With miners having ample cargo to sell, the prospect of sub USD40/t prices this week looks likely."
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