The Commodities Feed: Sustained Middle East flows fail to dent oil prices
Energy – China continues to draw down crude inventories Oil prices remain well-supported amid ongoing tensions in the Middle East despite relatively strong Persian Gulf flows. This suggests the market is pricing in a significant risk premium, given the situation’s volatility. However, if flows continue uninhibited despite the geopolitical environment, the risk premium would likely ...
Oil prices remain resilient despite Middle East tensions, indicating a significant risk premium among market participants. China's crude inventories see a reduction, with production up 2.5% year-on-year to 4.45m b/d in September. However, refineries processed only 14m b/d of crude, down 8.4% year-on-year. Despite this, China's total crude oil consumption fell 2.7% MoM and 15.2% YoY to 12.75m b/d in September, suggesting domestic demand slowdown.
In metals, China's aluminium production increased 3.1% year-on-year to 3.9mt in September, supported by strong smelter rates and margins. Nonetheless, year-to-date steel output remains down 2.9% YoY at 724.8mt. India's ethanol policy easing may alleviate global sugar supply concerns, with prices dropping for the second session. Sugar prices eased to US¢20.5/lb, falling for two consecutive sessions.
Meanwhile, investor sentiment in commodities remains supportive, with money managers increasing net long positions by 4,477 lots for the third consecutive week.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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