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Commodity Markets
14
OPEC Monthly Oil Market Report – June 2016
Average
base metal prices
decreased by 2.3%, with declines among all group
components, but zinc. Aluminum and copper prices decreased by 1.3% and 3.7%,
respectively. Average iron ore prices declined by 9.8%, after having advanced by 49%
in the previous four months.
In the group of
precious metals
, gold prices advanced by 1.5% m-o-m, however they
showed a large decline from their monthly peak, as expectations for interest rate hikes
firmed. Silver and platinum prices rose by 3.6% and 4.2%, respectively.
Graph 2.2: Inventories at the LME
In May, the
Henry Hub natural gas
index increased. The average price was up by 2¢,
or 0.9%, to $1.92 per million British thermal units (mmbtu) after trading at an average of
$1.90/mmbtu the previous month.
The US Energy Information Administration (EIA) said utilities added 82 billion cubic feet
(bcf) of
gas from storage
during the week ending 27 May. This was broadly in line with
the median market expectation of a 84 bcf increase. Total working gas in storage stood
at 2,907 bcf, or 32.4% higher than at the same time the previous year and 35.0%
higher than the previous five-year average. The EIA noted that temperatures during the
reported week were “1% above normal and equal to last year at this time”.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
0
100
200
300
400
500
600
700
May 15
Jun 15
Jul 15
Aug 15
Sep 15
Oct 15
Nov 15
Dec 15
Jan 16
Feb 16
Mar 16
Apr 16
May 16
'000 Tonnes
'000 Tonnes
Copper
Lead
Nickel
Tin
Zinc
Pr. Aluminium (RHS)
Sources: London Metal Exchange and Thomson Reuters.