Crude rallies, commodities stronger across the board - ANZ

Research Team at ANZ, notes that the crude oil rose to a four week high as speculation continued to mount that OPEC would discuss a potential cap on production at an upcoming meeting between the members of the group.

Key Quotes

“Russia joined in, saying it was open to such talks as well. News of an imminent collapse in oil out from Venezuela also supported prices.

Base metals turned around a poor end to last week, with nickel leading the gains. Growing concern over further nickel mine closures in the Philippines continues to support prices. The weaker USD also helped improve investor appetite in the sector. Iron ore closed above USD60/t, however it looks vulnerable to further falls after futures in China fell over 3% on the back of higher iron ore and steel inventories.

Gold also edged higher on the back of the weaker USD, although the stronger equity markets crimped investor appetite.”