Commodities Weekly: Oil slides as US-Iran tensions abate

Jan 14 04:01 2020 Print This Article

 

Oil prices fell from nine-month highs last week and have extended losses into this week, as escalating tensions between the US and Iran subsided. Gold also fell as safe-haven plays were scaled back, while agricultural commodities are higher, awaiting the signing of phase one of the US-China trade deal tomorrow.

 

Energy

CRUDE OIL prices have fallen for the past six sessions as the threat of escalating retaliation attacks in the Middle East appear to have disappeared. Last week saw the biggest weekly drop since mid-July for West Texas Intermediate (WTI), which touched the lowest level since December 6 yesterday.

Saudi Arabia has vowed to maintain stable oil markets and we are due to hear the demand outlooks for 2020 from three institutions over the next three days: OPEC, the International Energy Agency and the Energy Information Administration. China is scheduled to release its oil output data on January 17. On the US supply front, the number of US oil rigs in production fell for a third week last week, dropping to the lowest since March 2017.

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