Brent crude extended previous gains and gained about 0.5 percent on Friday. However, Iran’s threats it might stop selling its crude to “some” countries supported some physical grades, especially Russian crude (Urals) which is seen as the closest substitute for Iran’s oil. However, oil market (the main benchmarks Brent and WTI) remains relatively calm as well as speculator’s positions in US oil that are seen far below levels observed after an outbreak of war in Libya.
Let us remind that Iran’s controversial nuclear program will be further scrutinized by the IAEA inspectors who arrived in the country on Sunday.
The return of Chinese investors from the Lunar New Year holidays has not provided a further bullish impetus to the base metals complex so far. However, the latest CFTC data showed that a relatively bullish stance of speculative community towards copper emerged in past weeks.
Gold posted yet another gains on Friday and closed the most successful week in three months well above 1700 USD per troy ounce (USD/toz) level.
Today in early trading, the strengthening US dollar weighs on gold. Hence, the yellow metal is currently seen slightly below 1720 USD/toz.