WTI Crude Oil Recover Slightly From 2-week Lows, Palladium Futures Hitting 2-week Lows, Coffee Futures Hit 1-year Lows

Summary:

• Sanctions by the EU against Russian crude threatened to jeopardize the US's planned release of emergency oil stocks.
• Dollar index climbed back toward 20-year highs following a strong CPI reading.
• A stronger dollar and an improving crop forecast causing coffee futures to drop.

WTI Crude Oil edged above 2 week lows

As the latest sanctions by the European Union against Russian crude threatened to jeopardize the US's planned release of emergency oil stocks, WTI crude futures edged above $84 a barrel on Wednesday, recovering from two-week lows. Tankers transporting Russian crude beyond a predetermined price level would be subject to shipping restrictions from the EU, obliging shipowners to abide by the Group of Seven agreement to cap the price of Russian oil. In the meantime, it has been claimed that the US will release 15 million barrels of oil from its emergency supplies in order to lower the high cost of gasoline this winter. Following a White House charge that Saudi Arabia forced other countries to endorse the plan, Malaysia defended an OPEC+ decision to restrict oil production. It said the group “collectively took into consideration factors that include market fundamentals, particularly to address uncertainties in the global oil supply and demand situation.”

✕ WTI Crude Oil Futures Price Chart

Palladium falls to lowest price in 2-weeks

Palladium futures dropped to $2,070 per ounce, the lowest price in more than two weeks, as the dollar index climbed back toward 20-year highs following a strong CPI reading, which hit commodities. Despite rising interest rates and slower GDP, palladium prices are 30% lower than they were in March. It is anticipated that central banks would keep raising interest rates to keep inflation from soaring even when the economy is slowing. Furthermore, despite the price increase and supply chain disruptions, demand for palladium, which is used in auto catalysts for gasoline-powered vehicles, has not yet returned to its pre-pandemic levels. However, there is still a shortfall on the palladium market.

✕ Palladium Dec ‘22 Futures Price Chart

Coffee extended losses to 1 year lows

A stronger dollar and an improving crop forecast in top producer Brazil as a result of reports of ample rain that may encourage blooming for next year's coffee crop caused Arabica coffee futures on ICE to extend losses, levels not seen in almost a year. The most recent statistics revealed that on October 13th, ICE-certified arabica stocks reached a new 23-year low of 408,419 bags. Additionally, the world's largest consumer of coffee, Europe, has expressed concerns about the demand due to continued economic issues, according to investment bank Itau BBA.

✕ Coffee Dec ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com