Castor crop projected to dip 20-30%, Chinese economy records 6.4% Q1 growth & US crude inventories decline

13th Apr – 19th Apr

1. Russian oil output slipped to 11.3 million barrels a day in March

April 18 , 2019

Russian oil output slipped to 11.3 million barrels a day in March, a reduction of about 150,000 daily barrels from the end of last year. Russia’s refiners have stopped producing at least 746,000 barrels per day compared to the last month.

Source: Bloomberg

2. Castor crop is projected to dip by 20%-30% this year

April 19 , 2019

Castor crop is projected to be at least 20-30% less in the current season compared to the previous season. According to the survey conducted by the Solvent Extractors Association (SEA), castor production is estimated to be 11.26 lakh tonnes, compared to the previous years’ 14.16 lakh tonnes.

Source:Financial Express

3. China's economy grew by 6.4 percent in the first quarter

April 16, 2019

China's economy grew by 6.4 percent in the first quarter slightly above the market expectations. China’s economy grew by 6.4 percent year-on-year in the fourth quarter of last year, and 6.8 percent in the first quarter of 2018. Data is above the market expectations, which increased hopes that the economy will be reviving in the coming months.

Source: Moneycontrol

4. U.S. crude oil inventories fell by 1.4 million barrels in the week of April 12th

April 16, 2019

U.S. crude oil inventories fell last week according to the Weekly Inventory Report released by the Energy Information Administration. Crude oil inventories declined by 1.4 million barrels in the week ending April 12, as compared to forecasts of a stockpile draw of 1.2 million barrels, and after a gain of 7.03 million barrels in the previous week.

Source:Moneycontrol

5. Geopolitical issues in Libya and Venezuela may push oil prices higher

April 18, 2019

Oil supported by falling Venezuelan and Iranian exports and fighting in Libya have raised concerns of more supply threats. In Libya, fighting between Khalifa Haftar's Libyan National Army and the internationally-recognized government has raised the prospects of lower supplies.

Source:Reuters

6. Liquidity will improve once mutual funds start trading into commodities

April 16, 2019

Commodities will be a new segment for domestic fund houses once they start rolling it out; we can expect an improvement in the commodities future and cash markets. It will also help raise hedging for producers and large consumers which will lead to improved depth and liquidity in far-month contracts.

Source: Business Standard

7. Standardisation in hallmarking of gold is the need of the time

April 13, 2019

Indian jewellers have requested the government for standardisation in hallmarking of gold. Multiple measures of purity used in the bullion industry are creating confusion. As regards gold bars and coins, the purity required for hallmarking is 20 and 24 carats, but various forms of purity like 14, 18 and 22 carats are being used for the hallmarking process.

Source:Business Line

8. Oil producers not able to sell oil on Iranian exchange in absence of buyers

April 14, 2019

Iran’s oil production and exports have slumped after the U.S. put sanctions on its oil imports and new curbs are set to further restrict its exports. Trade on the Iranian energy exchange is not attracting buyers as oil offered to sell was 6 million barrels, while buyers were only for 35,000 barrels.

Source: Bloomberg