Commodities: Weaker across the board - ANZ

Research Team at ANZ, notes that the commodities were weaker across the board due to a combination of a stronger USD and weaker fundamentals.

Key Quotes

“WTI fell a bit more than 1% after EIA data showed a surprise increase in US inventories last week. With the market expecting a small fall, prices fell quickly after the data released showed a 2.5 million barrel gain. Crude production fell marginally, down 49kb/d to 8.55mb/d. Brent also came under pressure after Iraq said it still isn’t producing as much oil as it should be, raising concerns that OPEC supply will continue to increase.

Metals also came under pressure from the stronger USD. This was exacerbated by the release of further trade data which showed refined copper imports in July fell to their lowest level in three years. Gold struggled against a slightly more positive USD as traders await Yellen’s Jackson Hole speech for any guidance as to the next rate hike.”