Abans Group Commodity World Round Up

24 Apr – 29 Apr

1 .Deutsche Bank Sees 5%-6% Fed Target Rate and Deep U.S. Recession

Apr 26 , 2022

As per report from Deutsche Bank, The Fed will trigger a major US recession before the end of 2023 by hiking rates above 5%. Many analysts expect the Fed to raise rates to around 3% in 2023 without causing a major growth slowdown. But Deutsche Bank has warned clients that a recession is necessary to cool down red-hot inflation. The Federal Reserve will plunge the US economy into a major recession before the end of 2023 by hiking interest rates to between 5% and 6%, Deutsche Bank has predicted. The Fed raised interest rates for the first time since 2018 in March, as it grapples with the strongest inflation in 40 years. Higher borrowing costs reduce lending and spending in the economy, cooling the pressure on prices.

Source: Bloomberg

2 .OPEC+ likely to stick to existing deal and raise June output

Apr 28 , 2022

OPEC+ is likely to stick to its existing deal and agree another small output increase for June when it meets on May 5, six sources from the producer group told Reuters on Thursday, even as Russia expects its output to shrink further. The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, collectively known as OPEC+, have been unwinding record output cuts in place since the COVID-19 pandemic took hold in 2020. Under a deal reached in July last year, the group is set to increase output targets by 432,000 bpd every month until the end of September, to unwind its remaining production cuts.

Source: Reuters

3 .Iran Ramps Up Oil Exports as China Pulls Back on Russian Oil

Apr 28 , 2022

Iran is ramping up oil exports and benefiting from a rise in oil prices as its main buyer, China, pulls back on its purchases of Russian oil due to the war with Ukraine. Iran oil exports -- which go almost exclusively to China apart from rare deliveries to Syria and Venezuela -- rose to 870,000 barrels a day in the first three months of the year, up 30% from an average of 668,000 barrels a day in the full-year 2021, said commodities data provider Kpler. China cut back its purchases of Russian oil by 14% in March, according to data from Chinese customs administration.

Source: Dow Jones

4. Russian gas customers in Europe may accept Putin's payment terms

Apr 28 , 2022

Some of Russia's biggest natural gas customers in Europe's are preparing to accept the Kremlin's new payment terms rather than risk being cut off by Moscow, a fate suffered by Poland and Bulgaria this week. Gas distributors in Germany and Austria told CNN Business that they were working on ways to accept a Russian ultimatum that final payments for its gas must be made in rubles, while complying with EU sanctions. Germany has reduced its consumption of Russian gas to 35% of imports from 55% before the war in Ukraine, but says it needs to keep buying from Moscow at least until next year to avoid a deep recession.

Source: CNN

5 .Swiss gold exports to the United States rocketed in March

Apr 26 , 2022

Swiss shipments of gold to the United States surged in March to their highest since May 2020, Swiss customs data showed, as investors spooked by Russia's invasion of Ukraine and the threat of a global economic slowdown stocked up on bullion. Switzerland is the world's biggest refining and transit centre for gold. Exchange traded funds (ETFs) storing gold for investors added 185 tonnes worth around $15 billion to their stockpile in March, the most since July 2020, according to the World Gold Council. Such strong investor demand pushed up gold prices in February and March. Higher prices often put off retail consumers in Asia.

Source: Reuters

6 .Russia sees its oil output falling by up to 17% in 2022

Apr 27 , 2022

Russia may see its oil production fall by as much as 17% in 2022, an economy ministry's document seen by Reuters showed on Wednesday, as the country struggles with Western sanctions. According to the document, Russian oil output may decline to between 433.8 million and 475.3 million tonnes (between 8.68 million and 9.5 million barrels per day) in 2022 from 524 million tonnes in 2021. That would be the lowest since 2003, when Russian oil output stood at 421 million tonnes.

Source: Reuters

7 .Palladium falls on worries over China demand hit

Apr 25 , 2022

Palladium prices as China's COVID-led lockdowns soured the demand outlook for the autocatalyst. Palladium, used in vehicle exhausts to curb emissions, has retreated nearly 40% since hitting an all-time high in early March on concerns that the war in Ukraine could cut supply from key producer Russia.

Source: Reuters

8 .Peru gov’t declares state of emergency near MMG’s Las Bambas mine as stand-off continues

Apr 27 , 2022

The Peruvian government on Wednesday declared a state of emergency near MMG’s Las Bambas copper mine, where production has been halted for a week due to indigenous communities camped inside. Las Bambas accounts for 2% of the global copper supply and is a subject of recurring disruptions from impoverished local communities demanding higher financial contributions from the mine. Earlier this year, the mine was forced to slow down operations due to a road blockade.

Source: Reuters