Commodities: Mixed performance – ANZ

Research Team at ANZ, notes that the oil eased lower as another round of proposed production freeze talks by OPEC failed to excite investors.

Key Quotes

“A upgrade in US oil production forecasts by EIA also weighed on sentiment. EIA is now expecting US output to reach 8.31mb/d in 2017, up from its forecast of 8.2mb/d in July. Despite that, it is now expecting a deficit of 170kb/d in 2017, from its forecast surplus of 10kb/d.

Base metals were weaker with copper leading the falls on persistent fears of weak demand in China. Nickel held its ground as the impact of further mine closures in the Philippines continues to grow. China’s iron ore futures prices continued to edge higher, buoyed by strong buying from physical traders. This was despite a fall in Chinese steel futures yesterday.

Gold also ended the day higher, supported by a slightly weaker USD. Growing optimism that central banks will keep interest rates low is keeping investor demand strong.”