Abans Group Commodity World Round Up

05 Apr - 09 Apr

1. EIA Optimistic About Oil Demand Growth

Apr 07, 2021

As per the EIA report, global oil demand is set to rise by another 3.7 million BPD over 2021 and exceed the pre-pandemic levels from 2019. World consumption of petroleum is set to average 101.3 million BPD in 2022, EIA's latest estimates show. The 2021 global oil demand growth was lifted by 200,000 BPD, while the 2022 growth estimate was revised down by 100,000 BPD from the March forecasts, which had pegged demand growth at 5.3 million BPD this year and 3.8 million BPD in 2022.

Source: Reuters

2. Fed Remains Accommodative

Apr 07, 2021

 The Federal Reserve showing no signs of changing its ultra-easy monetary policy stance. Rising Treasury yields amid expectations that a strong economic recovery and rising inflation would force the Federal Reserve to rein in its ultra-easy monetary policies sooner than originally thought led to substantial dollar gains last quarter. Fed Chair Jerome Powell continued the theme at a virtual International Monetary Fund conference on Thursday, stating policy wouldn't shift until there was a prolonged spell of strong economic data, while board member James Bullard said the Fed should not even discuss changes until it is clear the pandemic is over.

Source: Reuters

3. US oil output is projected to fall

Apr 07, 2021

U.S. oil output is set to reach 11.04 million barrels a day this year, down from last month’s forecast at 11.15 million after a deep freeze in February that shut down the oil industry in Texas, according to U.S. government data. The Energy Information Administration also lowered its output forecast for 2022 by 100,000 barrels a day.

Source: Bloomberg

4. US Labor market recovery gaining steam

Apr 08, 2021

The number of Americans filing new claims for unemployment benefits unexpectedly rose last week, but the increase likely understated the rapidly improving labor market conditions as more parts of the economy reopen and fiscal stimulus kicks in. Initial claims for state unemployment benefits increased 16,000 to a seasonally adjusted 744,000 for the week ended April 3 compared to 728,000 in the prior week. Data for the prior week was revised to show 9,000 more applications received than previously reported.

Source: Reuters

5. China's auto sales surge 75% in March

Apr 09, 2021

Auto sales in China surged in March for their 12th consecutive month of gains, as the world's biggest car market leads the sector's recovery from the COVID-19 pandemic. Sales reached 2.53 million vehicles in March, up 74.9% year-on-year, data from the China Association of Automobile Manufacturers (CAAM) showed. Sales of new energy vehicles (NEVs), including battery-powered electric vehicles, plug-in petrol-electric hybrids and hydrogen fuel-cell vehicles, increased 239% in March to 226,000 units.

Source: Reuters

6. The global economy is projected to grow at 6 per cent in 2021: IMF

Apr 07, 2021

In 2020, the global economy contracted by 3.3 per cent. According to the IMF report, after an estimated contraction of 3.3 per cent in 2020, the global economy is projected to grow at 6 per cent in 2021, moderating to 4.4 per cent in 2022. The projections for 2021 and 2022 are 0.8 percentage point and 0.2 percentage point stronger than in the October 2020 WEO, reflecting additional fiscal support in a few large economies and the anticipated vaccine-powered recovery in the second half of the year

Source: Reuters

7. ECB Sees Scope for Cutting Bonds Buys After Second-Quarter Surge

Apr 08, 2021

European Central Bank policymakers at their meeting last month debated a smaller increase in bond purchases and agreed to front-load the buying this quarter on condition it could be cut later if conditions allow, the accounts of their meeting showed on Thursday. Monthly bond buys under the ECB's 1.85 trillion-euro Pandemic Emergency Purchase Programme jumped by over a fifth last month, enough to stabilize nominal bond yields and push inflation-adjusted yields back to their early-year lows.

Source: Reuters

8. BOJ sees scope to set common rules on CBDCs with major central banks

Apr 09, 2021

Global central banks have stepped up efforts to develop their digital currencies to modernise financial systems and speed up domestic and international payments. The BOJ is among a group of seven major central banks jointly looking into core features of CBDCs, which includes the U.S. Federal Reserve and the European Central Bank.

Source: Reuters