Brent extended Tuesday’s losses and the price of the front-month futures contract (ICE) dipped below 114 USD per barrel (USD/bbl) level yesterday. Meanwhile, the spread between the front-month and second-month contract edged lower and hit the lowest level since mid July which is in line with recent North Sea market conditions reports from Platts.
Today, EIA will release its US Petroleum Weekly Status Report. Yesterday’s API figures pointed to a deeper decline in crude inventories which was however offset by a below-consensus fall in product stocks. However, the most important event of the day is undoubtedly the ECB meeting. For a thorough discussion, please see today’s (17,58 EUR, 1,91%) Sunrise Market Commentary.
Base metals complex outperformed the rest of commodities on Thursday and on average gained more than one percent. Copper therefore hit 1-1/2 month high whereas the most active contract at Shanghai Futures Exchange gained 0.7 percent. Meanwhile, aluminium outperformed its peers in a second consecutive session and the price thus hit the highest level in about two months.