On Wednesday, the mood of investors in commodity markets improved, reflecting the CRB index. Its value increased yesterday by over one percent, reaching the level 221.23 point Energy raw materials, as well as some metals and agricultural goods, were the main drivers.
However, the slight impact of this information on the price of oil is due, among other things, to the fact that full data on fuel stocks in the United States will only present the US Department of Energy (DoE) today.
Norwegian oil projects under scrutiny
Yesterday oil prices rose – American WTI raw material increased on Wednesday by 1.5%. Nevertheless, it was only a symbolic correction – the price of oil is still moving around six-year minima and is currently less than 48 USD for a barrel.
Yesterday, oil prices increased despite unfavorable information on stocks of this raw material in the US. According to his weekly report, the American Paliw Institute (API), oil stocks in the U.S. over the past week have increased by 5,700,000 barrels.
However, the slight impact of this information on the price of oil is due, among other things, to the fact that full data on fuel stocks in the United States will only present the US Department of Energy (DoE) today.
Both of these institutions publish their weekly reports a day later than usual, due to the celebrated in the US on Monday of Martin Luther King Day.
Yesterday, however, there was also interesting information from Norway. It turns out that the country may be another US country starting to restrict oil production due to its current low prices. Already, some companies are considering withdrawing from some oil fields earlier than expected, thus reducing the duration of mining projects. If oil prices remain low for a long time, then it is also possible to postpone planned projects.
The oil sector is responsible for one fifth GDP of Norway. Due to the fall in oil prices in recent months, the sector is currently undergoing restructuring.
Copper still in consolidation
On the plus side, they also finished yesterday's session on copper. In part, it may have been the result of good data from the US real estate market and expectations of the introduction by the ECB of a programme to stimulate the euro area economy. However, looking at the copper market in the horizon of the last few days, you can see that yesterday's movement did not change too much on the chart of this raw material, it basically entered into the last few days' consolidation of the prices of this metal.
This morning, the price of copper remains in consolidation – the market is dominated by bears, which have already offset yesterday's growth movement. In the coming weeks copper should remain under supply pressure. The latest macro data from China were at most medium, and the prospects for the global economy have been pessimistic recently assessed, among others, by the World Bank and the International Monetary Fund.