On Tuesday, the Greek debt deal was broadly ignored by the markets and the front-month contract on Brent settled below 110 USD per barrel (USD/bbl) as the room for losses was limited due to continuing violence in Egypt. Meanwhile in the North Sea, the production at the Buzzard field returned to pre-maintenance level of 200 thousand barrels per day and the situation in the physical market further eased; according to Reuters’ data, Forties to Dated Brent differential fell to the lowest level since the end of September.
The base metals complex edged higher on Tuesday. The three-month contract on aluminium even settled above 2000 USD per ton and thus hit a new 7-week high while the price of copper hit three-week high in intraday trading. Over last two weeks, contango in the front-end of copper forward curve heightened – the spread between spot and three
month contract is seen close to the lowest level in more than two weeks although the latest data from the International Copper Study Group (ICSG) unveiled that the deficit in the refined copper market further deepened in August. However, a bullish impact of such news is limited as the ICSG forecasts that the market should turn into a surplus next year and the consumption of the metal in the world’s top consumer, China, is expected to grow more slowly in 2013 than this year.