Global gold demand up 7%, Iraq is India’s top oil supplier in FY19 & copper supply disruptions expected in 2019

27th Apr - 03rd May

1. Copper supply disruptions expected in Chile and Peru in the second half of this year

May 2, 2019

Supply disruptions in Chile and Peru in the second half of this year will become more apparent according to a report. Tesla, a major minerals consumer, expects shortages of nickel and copper due to an under-investment in the mining sector.

Source: Reuters

2. OPEC may discuss to increase production after supply shortfall from Iran and Venezuela

Apr 30, 2019

OPEC may discuss to increase production after a supply short fall from Iran and Venezuela. However, the supply situation remains tight; oil prices surged by around 40 percent between January and April, lifted by supply cuts from OPEC and US sanctions on Iran and Venezuela. According to experts, Iranian oil production is projected to decline to 1.9 million barrels per day in 2Q19 from 3.6 million barrels per day in 3Q18.

Source: CNBC

3. Indian rupee strengthens after crude oil decline from recent highs

May 3, 2019

The rupee appreciated against the US dollar this week amid easing crude oil prices and weakening of the dollar against other major currencies overseas. Selling of the dollar by exporters and sustained foreign fund inflows also supported the rupee.

Source: Moneycontrol

4. World gold demand grew by 7%: WGC Report

May 2, 2019

According to a World Gold Council (WGC) report, global gold demand grew 7% to 1,053.3 tonnes in the first quarter of 2019, against the year-ago period of 954.20 tonnes. Demand was mainly driven by higher purchases by the central banks and growth in gold-backed Exchange-Traded Funds (ETFs). Purchase of gold by central banks went up by 68% to 145.5 tonnes.

Source: Business Line

5. US Fed keeps interest rates unchanged

May 2, 2019

The US Federal Reserve held its benchmark rate in a target between 2.25 per cent and 2.5 per cent. The biggest concern flagged by the US Fed was the currently “muted” level of inflation, which continues to fall short of the Fed’s 2 per cent target. Fed policymakers have said that the ongoing economic growth, a strong labour market and an eventual rise in inflation were still “the most likely outcomes”.

Source: Business Standard

6. US Crude oil production jumps and inventories swells

May 1, 2019

US crude inventories soared more than expected to their highest levels since September 2017 as production hit a new record of 12.3 million barrels per day. US crude inventories climbed last week 9.9 million barrels to 470.6 million barrels, as production and imports grew and refining rates dropped, the Energy Information Administration said. 

Source: Economic Times

7. India’s aluminium exports to the US in 2018 increased by 58 per cent to $221 million

May 3, 2019

US sanctions on China have helped India raise its exports to the global market, driving up prices locally. India’s aluminium exports to the US in 2018 increased by 58 per cent to $221 million, according to the independent Congressional Research Service (CRS). Aluminium makers - Nalco, Hindalco and Vedanta - have all increased production of the metal.

Source: Economic Times

8. India’s oil imports from Iraq rose multi-fold after US sanctions on Iran

May 1, 2019

Iraq has become India's top crude oil supplier after US put sanctions on Iran. Iraq is meeting more than a fifth of the country's oil needs in the fiscal year 2018-19. Iraq sold 46.61 million tonnes of crude oil to India during April 2018 and March 2019, 2 per cent more than the 45.74 million tonnes it had supplied in the 2017-18 fiscal. India provisionally imported 207.3 million tonnes of crude oil in 2018-19, down from 220.4 million tonnes in the previous financial year.

Source: Business Standard