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Nickel extends gains above $30,000 a tonne

Economies.com
2022-12-29 15:52PM UTC

Nickel prices rose on Thursday as the dollar lost ground against most major rivals ahead of estimates for higher demand on commodities and minerals. 

 

Covid 19 infections continue to spread in a number of Chinese cities, hinting at a new potentially destructive wave that could harm the economy once more. 

 

The Chinese government recently announced incoming travellers wouldn't need to quarantine when reaching the country starting 2023. 

 

China is the world's largest industrial metals consumer, and another Covid 19 wave could tank demand on such commodities. 

 

The dollar index fell 0.4% to 104.1 as of 15:40 GMT to 104.01, with a session-high at 104.4, and a low at 103.8. 

 

Nickel spot prices rose 3.1% to $30.5 thousand as of 15:51 GMT. 

Oil loses 2.5% on Chinese demand concerns

Economies.com
2022-12-29 14:02PM UTC

Oil prices lost 2.5% in European trade, extending losses for the second day away from three-week highs on profit-taking amid renewed Chinese demand concerns. 

 

Such concerns overcame initial data that showed US crude stocks fell for the second week in a row ahead of official EIA data. 

 

Global Oil Prices

 

US crude fell 2.5% to $76.83 a barrel, with a session-high at $78.79, while Brent shed 2.3% to $81.90 a barrel. 

 

US crude fell 1.25% on Wednesday, while Brent declined 1.4%, the first loss in three days on profit-taking off three-week highs. 

 

Chinese Demand

 

The Chinese economy suffered considerably in 2022 from the zero tolerance policy for Covid 19, which led to long shutdowns in major cities.

 

The Chinese government recently eased some of the recent restrictions to buoy the market and launch a variety of financial incentives.

 

However, expects expect another wave or two in the pandemic after the Chinese new year, which could lead to even more shutdowns.

 

US Stocks

 

Initial data showed US crude inventories fell 1.3 million barrels in the week ending December 23, the second decline in a row, while experts estimated a drop of 1.2 million barrels. 

 

Now investors official EIA data later today, also expected to show a drop of 1.2 million barrels. 

US unemployment claims rise as expected

Economies.com
2022-12-29 13:35PM UTC

US unemployment claims rose to 225 thousand in the week ending December 24 from 216 thousand in the previous reading, while analysts expected 225 thousand.

Many risks await the oil market in 2023, what are they?

Economies.com
2022-12-29 11:59AM UTC

Global oil prices are about to mark a limited yearly profit, the second in a row as prices recover from the impact of the Covid 19 pandemic. 

 

As we approach the last session of the year tomorrow, now traders focus on studying the major risks that await the oil market in 2023. 

 

Global Demand

 

Most major banks and institutions have cut down their estimates for global growth in 2023, as global central banks continue to increase interest rates to control inflation. 

 

Such tightening policies are clearly impacting growth and threatening to send economies into recession, in turn hurting fuel demand. 

 

Higher interest rates and their impact on the economy have already manifested in the second half of the year, forcing major institutions to cut down on their fuel demand forecasts. 

 

Thus weaker global growth in 2023 is a major risk for the oil market next year as supplies could outstrip demand. 

 

Chinese Demand

 

The Chinese economy suffered considerably in 2022 from the zero tolerance policy for Covid 19, which led to long shutdowns in major cities. 

 

The Chinese government recently eased some of the recent restrictions to buoy the market and launch a variety of financial incentives. 

 

However, expects expect another wave or two in the pandemic after the Chinese new year, which could lead to even more shutdowns. 

 

OPEC+

 

The OPEC+ alliance extended its current output policies until June 2023, which is unusual compared to the monthly settling of policies in the last two years. 

 

The current production goals stand at 40.10 million bpd, after a 2 million bpd cut from October levels. 

 

The alliance remains on alert in case oversupply overcomes the market, which could tank prices once more. 

 

The alliance members asserted their readiness to convene at anytime ahead of their scheduled next meeting in June 2023 if needed. 

 

Russia in particular could become isolated inside the alliance if it took an extreme lone position due to western pressures on Russian supplies, which could create tensions with more moderate forces in the alliance. 

 

Covid 19 Wave

 

There's a risk that a deadlier variant of Covid 19 could spread once more worldwide, in turn hurting global growth and fuel demand. 

 

We already saw how the initial wave in 2020 led to a collapse in fuel demand and huge losses in price, and a repeat isn't ruled out. 

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What is the price of Steel today?

The price of Steel is $865.00 (2025-07-03 06:14AM UTC)