U.S. crude oil prices rose above $50 per barrel on Monday and were near last week’s multi-month highs
U.S. oil prices hit $50 on rising refinery demand, falling rig count- U.S. crude oil prices rose above $50 per barrel on Monday and were near last week’s multi-month highs as the number of U.S. rigs drilling for new production fell and refineries continued to restart after getting knocked out by Hurricane Harvey. “Demand forecasts from OPEC and IEA … continued to improve sentiment in the market. Refineries are also reporting a much better recovery from the recent hurricanes,” ANZ bank said on Monday. Oil refineries across the Gulf of Mexico and the Caribbean were restarting after being shut due to hurricanes Harvey and Irma, which battered the region over the past three weeks. The refinery restarts are occurring “as signs emerge of stalling growth in the U.S. shale industry. The number of rigs drilling for oil in the U.S. fell sharply last week,” ANZ said. Despite these signs of a tightening market, analysts warned that distortions from the recent hurricanes made it hard to identify more long-lasting supply and demand fundamentals. “This week’s crude inventories data will almost certainly still show the distortions of Harvey and Irma and significant increases may be looked at by traders as outlier data,” said Jeffrey Halley, senior market analyst at futures brokerage OANDA.
Gold Prices Start the Week on Back Foot as Focus Turns to Fed – Gold prices started the week on the back foot on Monday, sliding to their lowest level since the end of August, as investors looked ahead to a Federal Reserve policy meeting for insights into the outlook for monetary policy. The yellow metal lost nearly 2% last week, its first weekly decline in a month, as investor interest in riskier assets, such as stocks, found buying interest. A key focus for markets this week is the Federal Reserve’s two-day policy meeting that ends on Wednesday. The Fed is widely expected to keep interest rates unchanged this week, but is likely to announce a plan to start shrinking its massive $4.5 trillion balance sheet in an effort to normalize policy. Markets will also be looking for further clues on the timing of the next Fed rate hike, with around 60% of market players expecting a move by December, according to Investing.com’s Fed Rate Monitor Tool. Besides the Fed, developments on the Korean Peninsula are likely to continue attracting attention. U.S. President Donald Trump referred to North Korean leader Kim Jong-Un as “Rocket Man” in a tweet on Sunday as other U.S. officials continued to reiterate that “all options” were on the table in dealing with the hermit state. Trump is expected to address world leaders at the United Nations on Tuesday, where he is expected to seek support for tougher measures against Pyongyang.
NBS: China Lead Output Grows in August – China’s lead output rose in August, according to the National Bureau of Statistics (NBS). Lead Stocks in Shanghai and Guangdong Hit Record Lows, SMM Says. The country produced 401,000 tonnes of lead in August, up 3.6% from a year ago.
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