Finance forum: Raw materials

Raw materials are natural resources that are intended for processing or use, such as petroleum, wheat or metals. They differ due to their respective branches of origin in agriculture and mining, but also due to their use in the production chain, in the food sector and in industry. Specific stock indices are dedicated to them, reflecting the progress of the mining, production, processing and distribution chains.

OPEC+ reaffirms increased output and the UK recommends investing in new oil and gas fields

Posted on 02.09.2021

Leading oil majors convened yesterday and upheld July’s oil output increase. The Organization of Petroleum Exporting Countries and their allies (OPEC+) members had decided to increase oil output by 400,000 barrels per day (BPD) starting August 2021. The July deal came after some members failed to reach an initial agreement, bringing discussions to a halt. But, OPEC+ members finally agreed to increase production and continue reassessing the supply situation monthly.  In yesterday&rsqu ...

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Want to diversify your portfolio with commodities? Consider commodity ETFs

Posted on 01.09.2021

Commodities we use every day could also be a store of value or provide security against inflation. They often move in an opposite direction compared to stocks. So, if share prices rise, commodity prices fall. But, the issue with commodity investing is that it’s often difficult to invest in the actual commodities. So investors are looking to commodity exchange-traded funds (ETFs) as an easy alternative way to hold commodities.  Commodity ETFs often track the price of a single commodit ...

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Brent and WTI jump more than 5% ending seven-day rolling losses

Posted on 24.08.2021

Oil prices gained more than 5% in yesterday’s session, reporting their first gains after a seven-day losing spree. The jump is the highest in nine months as commodities and stock rally. Brent crude ended the session at $68.75 per barrel, up by 5.5%. WTI also reported a similar 5.6% gain, ending at $65.64 per barrel.  The rise was fuelled by a weakening dollar, which meant the crude became less expensive for holders of other currencies. Jim Ritterbusch, the president of Ritterbusch ...

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Brexit and the pandemic add to the UK’s inflationary pressures

Posted on 20.08.2021

Inflation has been the talk of the town for quite some time. After hitting 2.5% in June, the UK got a breather from inflation as the figure retreated to 2%. Still, inflationary pressures are expected to continue as the UK’s exit from the European Union and the pandemic threaten to slow economic recovery and push prices up.  According to a poll of 1,500 companies conducted by Lloyds Bank Plc and IHS Markit, the outlook for economic recovery was the weakest since January. Another repor ...

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WTI futures fall below $65 per barrel as US demand declines

Posted on 19.08.2021

The surprise increase in US fuel inventories led crude prices on a declining trajectory. The WTI ended yesterday’s session in the red, dropping below $65 per barrel to its lowest since May. The decline extends crude’s drop to a fifth consecutive session, marking the longest losing streak since March.  In the latest Federal Reserve meeting, the minutes suggested that a reduction in monthly purchases of the commodity could start as soon as this year. According to Phil Flynn fro ...

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Oil profit distributions are back but not for long as prices dip on Delta fears

Posted on 04.08.2021

Oil prices dipped for the second day as Covid-19’s Delta variant spreads in China, threatening to disrupt global crude consumption. The WTI ended yesterday’s session down 1% at $70.56, its lowest price in two weeks. Brent followed, dropping 0.66% to $72.41.  The drop brought the WTI below its 50-day moving average and closer to its 100-day moving average. That could result in additional selling from funds that follow such oil trends.  According to China National Petrole ...

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Oil dips as delta cases surge and China imports fall

Posted on 27.07.2021

Oil futures fell yesterday as fears mounted over the impact of the Covid-19 delta variant and China’s crackdown on import quotas. The WTI crude contracts for September ended at $71.91, down 0.22%. While Brent contracts inched up by 0.54% to reach $74.5.  Global Covid-19 cases surged the most in two months as infections rose in the US, India, Indonesia, Brazil, and the UK. In countries where vaccinations are low, cases resulted in increased fatalities and the need for new re ...

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Oil prices tumble, could China add fuel to the fire?

Posted on 21.07.2021

Oil prices tumbled during the week’s opening session. Despite a slight rebound yesterday, the commodity has taken a hit on the back of lower demand, higher supply, and a slowdown in the global economy. Fund managers have also contributed to the drop as they benefit from oil price’s retreat to book profit on short positions. But a spotlight on China shows the country’s stance on oil may lead to further price drops.  Factors leading to an oil price drop so far 1. OPEC+ sup ...

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OPEC+ agrees to boost crude supply bringing oil prices down

Posted on 20.07.2021

OPEC+ ended its standstill, agreeing to a 400,000 barrels per day monthly supply hike. According to Ed Moya, senior markets analyst at Oanda Corp., demand has taken a hard hit as resurgent viruses shake investor confidence and restrict mobility. The case for crude is shifting with low demand and high supply pressuring prices. Crude futures fell in New York on Monday by 7.5%, its steepest decline since September. Brent  prices dipped below $70 per barrel, ending at $68.62. The WTI followed ...

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