Crude posted modest losses on the eve of OPEC’s meeting. Brent dipped below 115 USD per barrel (USD/bbl), whereas the front-month contract on WTI settled even below 98 USD/bbl.
As far as the meeting is concerned, a modest increase in production quotas is expected. The cartel is set to close the gap between current quotas and official production, which stands at about 1.4 million barrels per day. On the other hand, a higher increase in quotas will be hard to push through. Saudi Arabia, the strongest OPEC member, as well as other Gulf countries, would like to see prices lower. On the other hand, several hawkish members (including Iran) are comfortable with the current price level. Moreover, Iraqi Oil Minister Luaibi said today that current prices had not been too high.
Metals
Copper briefly touched 9200 USD per ton (USD/t) level on Monday. Chile’s El Teniente mine (world’s fifth largest copper mine) was operating on 40% on Monday as a strike of contractor workers continued. The most of mine’s workers stayed home for a third consecutive day due to the rising violence of contractors who had earlier thrown rocks at busses carrying regular workers, Reuters said.
Concerns related to the worsening outlook for global economy have bolstered gold price in recent sessions. On Monday, the metal touched one month high above 1550 USD per troy ounce (USD/toz) level. Technically, the next target is seen at 1553 USD/toz.