WTI Crude Oil Futures Falling As Demand Forecasts Look Grim, Palladium Futures, Coffee Futures Declining
Aa
Share
Summary:
- WTI Crude oil dropped around 6% as demand forecasts deteriorated.
- Palladium futures up almost 13% in 2022.
- Coffee futures touching 6 week lows.
WTI Crude Oil inventories increased
WTI crude futures traded near $87 per barrel on Thursday, having dropped about 6% in the previous three days as a result of a deteriorating demand forecast and a significant increase in US crude inventories. On Wednesday, OPEC reduced its projections for the growth of the world's oil demand by 460,000 and 360,000 barrels per day, respectively. They cited high inflation, stagnant development in rich economies, and China's Covid lockdowns as reasons. The US Energy Department also reduced its projections for US and global consumption, with US consumption projected to climb by just 0.9% from a previous forecast of 1.7% in 2023 and by just 1.5% from a previous projection of 2%. US crude stockpiles rose by more over 7 million barrels last week, according to an industry report. Oil prices were also affected by the US Federal Reserve's hawkish minutes, in which the central bank vowed to retain interest rates at their current levels until inflation starts to decline.
WTI Crude Nov ‘22 Futures Price Chart
Palladium futures
Since the start of 2022, the price of palladium has climbed by 242.31 USD/t oz., or 12.81%, according to trading on a contract for difference (CFD) that monitors the benchmark market for this commodity.
Palladium Dec ‘22 Futures Price Chart
Coffee Futures touching 6 week lows
As showers in Brazil's coffee belt may improve the crop forecast, Arabica coffee futures on ICE extended losses toward $2.15 per pound, approaching levels not seen in more than six weeks. Rainfall in Minas Gerais, which makes up around 30% of Brazil's arabica crop, is predicted to bring much-needed moisture and enhance prospects for the crop in the top producer in the world the following year. The most recent statistics revealed that on October 3rd, ICE-certified arabica stocks hit a new 23-year low of 417,306 bags.
Coffee Dec ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
