Markets apparently came to the conclusion that recent poor macroeconomic data raised the chance for more Fed simulation in the near future. Moreover, this assessment was confirmed by the minutes of the August Fed meeting as it showed that the Fed had discussed several options to support the economy Both Brent and WTI firmed by about 2 percent. Interestingly, increasing likelihood of further monetary stimulus overshadows prospective return (at least a part) of Libya’s oil to the market. As a matter of fact, new Libyan oil minister said yesterday that he expected oil fields and wells to go back pumping close to normal situation. He added that the full output (about 1.6 million barrels per day) should be reached within 15 months.
Regarding the calendar today, apart from the regular EIA numbers, the market will focus on the ADP Employment report. The number could provide a hint for the key US payrolls figure (due to Friday).
The Minutes from the latest FOMC meeting weighed on the US dollar and supported commodities prices across the board. Markets bet that further Fed stimulus is on the way and base metals prices have been well supported over past few sessions. Copper price rises for a fourth consecutive session today and the metal is currently trading a shy of 9200 USD per ton level.
Gold gained more than 2.5 percent on Monday. The price of the metal surged in early afternoon and remained well supported during the US session by a significantly worse than expected figure on US consumer confidence which shrunk to the lowest levels since April 2009.