Abans Group Commodity World Round Up

28th Sept – 02nd Oct

1. Iraq boosts oil exports despite OPEC+ pledges

Oct 02, 2020

Iraq exported a total of 78,388,619 barrels of crude last month, according to data from Iraq’s ministry of oil, as cited by Iraq Business News. This means that Iraq’s average crude oil exports stood at 2.613 million barrels per day (bpd) for September, slightly up from the 2.597 million bpd of crude that the country exported in August.

Source: Reuters

2. Venezuela's oil exports hit a five-month high

Oct 03, 2020

Venezuela's oil exports rose last month, boosted by larger sales to customers aiming to take as many cargoes as possible before a U.S. deadline to wind-down trade with the sanctioned nation, according to data from state-run PDVSA and Refinitiv Eikon. A total of 24 cargoes departed from PDVSA's ports in September, carrying some 690,000 barrels per day (bpd) of crude, and fuel for exports, the highest level registered since April, according to the documents and available data. Gasoline-thirsty Venezuela also increased its oil imports in September, to 156,000 bpd of condensate, gasoline and diesel, almost triple the volumes received in August, through oil swaps with its customers, and business partners.

Source: Reuters

3. Central bank gold-buying seen climbing from a near decade low

Sep 30, 2020

Gold buying by central banks, an important driver of bullion’s advance in recent years, is forecast to pick up in 2021, after a slowdown this year. Citigroup sees demand from the official sector rising to about 450 tons, after a drop to 375 tons this year, which would be the lowest in a decade. HSBC Securities expects a slight uptick to 400 tons, from an estimated 390 tons in 2020, potentially the second-lowest amount in 10 years.

Source: Business Line

4. US jobs report shows fewer hires as recovery loses momentum

Oct 02, 2020

US Non-farm payrolls rose by less than expected 661,000 in September, and the unemployment rate was 7.9%, the Labour Department said on Friday in the final jobs report before the November election. The decline in the unemployment rate came along with a 0.3 percentage point drop in the labour force participation rate to 61.4%, representing a decline of nearly 700,000. However, a separate, more encompassing measure that counts discouraged workers, and those working part-time for economic reasons, also saw a notable decline, falling from 14.2% to 12.8%.

Source: CNBC

5. China’s manufacturing activity expanded in September 

Sep 29, 2020

The official manufacturing Purchasing Manager’s Index (PMI) for the month of September stood at 51.5, compared to 51.0 in August, according to the National Bureau of Statistics. Analysts polled by Reuters had expected the official manufacturing PMI to come in at 51.2 in September. PMI readings above 50 indicate an expansion, while those below that level signal a contraction. PMI readings are sequential and indicate month-on-month expansion, or contraction. Official services PMI came in at 55.9 for the month of September, compared to 55.2 for the month of August. China’s manufacturing sector was hit earlier this year, as factories shut due to large-scale lockdowns to contain the coronavirus pandemic.

Source: CNBC

6. Copper rebounds on upbeat Chinese and U.S. economic data

Sept 30, 2020

On Wednesday, data showed China’s factory activity extended solid growth in September, underlining a steady economic recovery from the coronavirus shock, while U.S. data showed private employers stepped up hiring in September by more than what had been forecast.

Source: Reuters

7. U.S. Oil Rig Count Rises as WTI Prices Slide

Oct 02, 2020

Baker Hughes reported on Friday that the number of oil rigs in the United States rose by 6 to 189—a gain that may push prices down further. The total number of active oil and gas rigs increased for the week by 5, with oil rigs increasing by 6, and gas rigs decreasing by 1. Total oil and gas rigs in the United States are now down by 589, compared to this time last year.

Source: Reuters

8. Speculative long bets increased in Gold and Silver

Oct 02, 2020

The net long positions in gold futures increased as a rise in speculative long positions was accompanied by a fall in speculative shorts. Traders also resumed accumulating gold on price correction. According to the CFTC Commitments of Traders report for the week ended September 29, Gold futures’ net long soared +24599 contracts to 243659. Speculative long positions gained +7091 contracts while shorts plunged -17 508. Silver futures’ net logn gained +1 783 contracts to 40730. 

Source: Reuters