4 Sep 2013
Commodities soar on news jitters and ‘greenback’ boosting
FXstreet.com (Athens) -Commodities rose sharply on Tuesday mostly to Syria’s woes and to the American dollar strengthening.
Will Commodities continue to set up the uptrend behavior amidst war woes and the notorious 'tapering' ?
Brent crude oil futures rose more than $1 per barrel on Tuesday and settled 1.2 percent higher, due not only to tighter global supplies but also to the American dollar strengthening across the board. What’s more, U.S. lawmakers voiced support for military action against Syria, upholding fears of oil supply disruptions in the broader Middle East. Meanwhile and mainly, there were a lot of Russian news jitters about “rocket launch seen in Mediterranean Sea”, that skyrocketed commodities. Brent crude oil settled $1.35 per barrel higher at $115.68. Last but not least, supply disruptions elsewhere in the market underpinned prices. Some North Sea cargoes have been delayed into October. Outages in Libya, South Sudan, Iraq and Nigeria amounted to 3.15 millions of barrels per day (bpd), about 3.5 percent of daily world oil demand of 90 million bpd.
Due to the dollar strengthening across the board, the news jitters especially on behalf of Russian officials, there was a solid demand for ‘safe-haven’ assets, like the Japanese yen, the ‘Swissie’ and the gold. The spot gold price touched the area of $1.416 an ounce, after President Barack Obama won the backing of two top Republicans in Congress in his call for limited U.S. strikes on Syria. In addition, silver strongly correlated with gold, was up 0.7 percent to $24.30 an ounce. As it was widely expected, the trading volume boosted again about 20 percent above its 30-day average, as U.S. traders returned to work after Monday's Labor Day holiday.
Will Commodities continue to set up the uptrend behavior amidst war woes and the notorious 'tapering' ?
Brent crude oil futures rose more than $1 per barrel on Tuesday and settled 1.2 percent higher, due not only to tighter global supplies but also to the American dollar strengthening across the board. What’s more, U.S. lawmakers voiced support for military action against Syria, upholding fears of oil supply disruptions in the broader Middle East. Meanwhile and mainly, there were a lot of Russian news jitters about “rocket launch seen in Mediterranean Sea”, that skyrocketed commodities. Brent crude oil settled $1.35 per barrel higher at $115.68. Last but not least, supply disruptions elsewhere in the market underpinned prices. Some North Sea cargoes have been delayed into October. Outages in Libya, South Sudan, Iraq and Nigeria amounted to 3.15 millions of barrels per day (bpd), about 3.5 percent of daily world oil demand of 90 million bpd.
Due to the dollar strengthening across the board, the news jitters especially on behalf of Russian officials, there was a solid demand for ‘safe-haven’ assets, like the Japanese yen, the ‘Swissie’ and the gold. The spot gold price touched the area of $1.416 an ounce, after President Barack Obama won the backing of two top Republicans in Congress in his call for limited U.S. strikes on Syria. In addition, silver strongly correlated with gold, was up 0.7 percent to $24.30 an ounce. As it was widely expected, the trading volume boosted again about 20 percent above its 30-day average, as U.S. traders returned to work after Monday's Labor Day holiday.