Commodities Weekly: Brent Marches Higher
- By Viresh Kanabar
- Sign-up to discuss on Slack
- 4 min read
Summary
- Saudi Arabia announced an extension of their unilateral production cuts to December, but the market’s immediate reaction seems to be larger than expected given how little new news we received.
- The new orders-inventories ratio in the PMIs is rising, we could see a bounce-back in diesel demand supporting crack spread.
- Robust steel production has boosted Chinese steel inventories (per CISA). An expansion of existing production caps/further property sector weakness should pressure iron ore prices from here.
Summary
- Saudi Arabia announced an extension of their unilateral production cuts to December, but the market’s immediate reaction seems to be larger than expected given how little new news we received.
- The new orders-inventories ratio in the PMIs is rising, we could see a bounce-back in diesel demand supporting crack spread.
- Robust steel production has boosted Chinese steel inventories (per CISA). An expansion of existing production caps/further property sector weakness should pressure iron ore prices from here.
Subscribe to Macro Hive Professional to read this article
and enjoy exclusive professional features such as in-depth analysis, insightful op-eds, and more.
Already have Macro Hive Professional account? Log in