Palladium at record highs, OPEC to cover supply loss due to Iran ban & brent oil prices stabilize

08th Dec – 14th Dec

1. International Spot Gold rallied to five months high over dollar decline and US jobs data

December 10, 2018

Gold traded bullish near a five-month high this week, supported by disappointing US jobs data. Non-farm payrolls increased by 155,000 jobs in November, while economists polled by Reuters had forecast payrolls increasing by 200,000 jobs. Gold rallied in the past few weeks as dollar slipped against the yen and the euro, while stocks extended selling due to worries over US-China trade tensions.

Source: Economic Times

2. Crude decline helped OMC’s to reduce transport fuel prices

December 10, 2018

Crude oil prices have dropped more than 30% since the October highs, putting Oil Marketing Companies (OMC’s) in a comfortable position to reduce petrol and diesel prices. The OMCs this week again slashed fuel prices on account of falling global crude oil rates.

Source: Financial Express

3. Base metals rallied after the US-China trade talk but rally stalled after Canada arrested Huawei’s CFO

December 09, 2018

Base metals rallied after the US and China agreed to a truce in a trade dispute after the G-20 summit and they will not put any fresh tariffs on each other for an agreed time frame of 90 days. But this rally did not sustain after Canada arrested Huawei Technologies CFO at the request of the US due to violation of US trade sanctions against Iran.

Source: Money control

4. Expect an increase in export of Gem & Jewelry in remaining months of FY-19

December 10, 2018

As the macro-economic condition has improved in US, Christmas demand will be better this year and Indian exports may see an increase in its exports in comparison to April - October. India’s gem and jewelry exports witnessed a decline of 4.35% in dollar terms during April-October.

Source: Economic Times

5. Brent oil prices stabilize and recovered from recent losses over Libya’s loss of production

December 11, 2018

Oil prices rose following reports of a production loss of 315,000 barrels per day (bpd) at the El Sharara oilfield, which was seized at the weekend by a local militia group. Libya's National Oil Company (NOC) declared force majeure late Monday on exports from the El Sharara oilfield, which was seized at the weekend by a militia group. It is likely to result in a production loss of 315,000 barrels per day (bpd) and an additional loss of 73,000 bpd at the El Feel oilfield.

Source: Financial Express

6. Positive movement in commodity prices and depreciating Rupee rewards Indian trade growth in double digits

December 10, 2018

Global commodities prices rising significantly and simultaneously the Indian rupee depreciating against major currencies in Q3 month are the key reasons behind double digit growth in Indian trade. Indian exports remained competitive and margins improved due to depreciation of domestic currencies. India is also emerging as a favorable trade destination for both advanced and emerging markets with vehicles, metals, seafood and pharma playing a key role on the export front.

Source: Business Line

7. OPEC confirms covering supply loss due to Iran ban

December 12, 2018

OPEC confirmed on Wednesday that the cartel had offset decreased Iranian oil exports which were a matter of concern after US put sanctions on Iran from November 4th. OPEC also lowered the 2019 forecast of demand for its crude as supply will increase next year but demand may not pick up due to the US-China trade war. Next year, the demand for crude oil would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month, and 1.53 million less than it currently produces.

Source: Reuters

8. Palladium at record high

December 13, 2018

Palladium prices rose strongly on the news that China would be reducing tariffs on U.S. imported autos, raising hopes that the sector would be boosted by additional demand. China appears to be easing its high-tech industrial development push, dubbed “Made in China 2025,” which has long irked the United States, amid talks between the two countries to reduce trade tensions. It will also boost imports of US based Autos.