Platinum Futures, Wheat Trading At 3-month Highs, OPEC+ Cuts Gasoline Output By 2million Barrels Per Day
Aa
Share
Summary:
- After falling for around 100 days, gasoline prices in the US are now rising.
- Chicago wheat futures were trading, close to the highest price since the end of June.
- Platinum futures rose 4.25% during 2022.
Platinum futures
According to trading on a contract for difference (CFD) that monitors the benchmark market for this commodity, platinum has dropped 40.90 USD/t oz. or 4.25% since the start of 2022.
Platinum Jan ‘23 Futures Price Chart
Wheat supply shortages expected
In October, Chicago wheat futures were trading, close to the highest price since the end of June due to worries about a shortage of supply. Concerns that Russia would terminate the secure trade route from Ukrainian Black Sea ports that was agreed to in a deal mediated by the UN arose after Russia invaded Ukrainian land and threatened to use nuclear force. The 2022 wheat harvest was also at its second-smallest level in 20 years due to the dry and hot weather in the US. In its annual Small Grains Summary report, the USDA estimated the US wheat harvest at 1.650 billion bushels, which was below than market expectations of 1.778 billion bushels and predictions from August of 1.783 billion bushels.
Wheat Dec ‘22 Futures Price Chart
Rising Gasoline prices threaten to harm consumers further
After falling for around 100 days, gasoline prices in the US are now rising, posing a fresh threat to consumers who have already been suffering from widespread inflation for more than a year. A 14-day stretch of rising gas prices is the result of upkeep at fuel production facilities, increased demand, and limited fuel supply. According to OPIS, an energy-data company that is a division of Dow Jones & Co., the publisher of The Wall Street Journal, a gallon of normal cost around $3.831 on Wednesday.
Analysts predict that the agreement to reduce oil production by 2 million barrels per day by the Organization of the Petroleum Exporting Countries and its allies led by Russia on Wednesday will result in a further increase in oil prices. The White House announced that it would look at ways to protect American consumers, calling the action unwise.
Analysts anticipate that most drivers won't have to deal with $5 gas as they did in June, in part because wintertime demand is usually lower. Although refiners convert to producing winter-grade fuel blended with butane at this time of year, which has reduced production costs and is therefore more affordable, prices are still unusually high, according to Richard Joswick, head of global oil analytics at S&P Global Platts.
RBOB Gasoline Nov ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com, wsj.com
