Brent futures rose by 0.26 per cent to $90.06 per barrel (pb), recovering from the previous day’s loss of $89.83pb. Worries over possible supply disruptions in the Middle East owing to the Israel-Hamas war resurfaced, increasing bullish sentiments, said Bismarck Rewane, Chief Executive Officer (CEO) of Financial Derivatives Company (FDC) Limited.
“We expect oil prices to be influenced by the release of US crude inventories data and persistent supply concerns”, it however said.
On Year-to-date (YtD), the price of aluminium fell by five per cent to $2,181/tonne in October 2023 from $2,300/tonne in December 2022. This decline is due to the global economic downturn and the continuous strengthening of the US dollar, which makes commodities priced in dollars, like aluminium, more expensive for foreign buyers. Looking ahead, we expect prices to be bullish in 2024 owing to higher demand from China (top consumer) and supply shortages. The EIU estimates a supply deficit of 400,000 metric tonnes in 2024.
The CNBC, the previous day reported that oil prices fell for the third straight session, after a flurry of slow economic data from Germany, the euro zone and Britain that weighed on the outlook for energy demand. Brent crude futures were down $1.76, or two per cent, at $88.07 a barrel. U.S. West Texas Intermediate crude futures were down $1.91, or 2.2 per cent, at $83.58 a barrel.
Euro zone business activity data took a surprise downward turn this month, suggesting the bloc may slip into recession.
German readings suggested a recession in that country is underway. Britain’s businesses reported another monthly decline in activity, highlighting recession risks ahead of the Bank of England’s interest rate decision next week.
