WTI Crude Oil Gains After 4-Months, Palladium Futures, Rainfall To Improve Coffee Crop
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Summary:
- OPEC+ meeting on Wednesday driving WTI Crude Oil prices.
- Rainfall in Brazil may improve coffee crop.
WTI Crude Oil rising after 4 months
After rising about 9% in the previous two days, WTI crude futures maintained close to $86 per barrel on Wednesday as investors prepared for an OPEC+ meeting where it is anticipated that a significant supply cut will be announced to bolster oil prices. The cartel is expected to meet in Vienna on Wednesday and is reportedly considering lowering production by as much as 2 million barrels per day, which is double the amount previously signaled and would be the largest reduction in output since the peak of Covid-19 lockdowns. The impending EU ban on Russian petroleum, which is scheduled to go into force in December, and a US-led plan to place a price cap on Russian oil also cast a shadow over the situation, and President Vladimir Putin threatened to retaliate by cutting off supply. The commodity markets were under pressure due to tighter monetary conditions, concerns of a recession, and a strong dollar. This week's gains came after four straight months of losses. As the organization was already having trouble meeting its output goals, concerns about the efficiency of the OPEC+ supply curbs continued.
WTI Crude Oil Futures Price Chart
Palladium climbed 21.61% since the start of 2022
Since the start of 2022, the price of palladium has climbed by 408.94 USD/t oz., or 21.61%, 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 may be on the fall
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 data revealed that on September 30th, ICE-certified arabica stockpiles were at 426,180 bags, the lowest level in 23 years.
Coffee Dec ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
