OPEC Monthly Oil Market Report – September 2017
in August increased by 4.4% m-o-m and by around 27% in the Jan-Aug period
compared to the previous year. This has supported headline consumer price inflation readings, though the
effect would tend to fade towards the end of the year should energy prices stay around current levels. The
largest monthly average increase in the energy group was in Australian benchmark thermal coal prices which
increased by 9.6% m-o-m and are 53% higher y-o-y in the January-August period.
decreased by 1.7% in August, with average food prices decreasing by 3.4%. Agricultural
commodity prices have been relatively flat on average in a year to date comparison therefore their
contribution to inflation has been relatively muted compared to energy commodities. Prices of winter wheat,
rice, maize and soybeans decreased m-o-m by 15.4%, 5.8%, 5.7% and 4.4%, respectively.
Average base metal prices
increased by 7.6% in August, with advances among all group components.
Metal prices are around 23% higher year to date and have experienced the best performance among
commodity groups since the beginning of the year. Copper, aluminium and nickel advanced by 8.4%, 6.7%
and 14.7% during the month, respectively.
In the group of
, gold prices increased by 3.7% on average, a trend that has continued at
the beginning of September on the expectation of a lower path of interest rates in the US.
Graph 2 - 1: Major commodity price indices
Graph 2 - 2: Inventories at the LME
In August, the
Henry Hub natural gas index
declined. The average price was down by 9ȼ, or 2.7%, to
$2.88/mmbtu after trading at an average of $2.96/mmbtu in the previous month.
said utilities added 65 bcf of
working gas in underground storage
during the week ending
1 September 2017. This was slightly above the median analysts’ expectations of a 63 bcf injection. Total
working gas in underground storage stood at 3,220 bcf, 6.2% lower than at the same time the previous year,
but 0.5% higher than the previous five-year average.
HH natural gas
Source: World Bank, Commodity price data.
Base year 2010 = 100
Pr. Aluminium (RHS)
Sources: London Metal Exchange and Thomson Reuters.