Business News Asia
Rising global demand for crude oil continues to push prices higher this morning.
WTI crude futures rose $1.16, or 1.42%, to $83.36 a barrel, the highest level since October 2014.
BRENT crude oil futures rose 94 cents, or 1.11%, to $85.80 per barrel. This is the highest closing level since October 9, 2018.
The International Energy Agency (IEA) has raised its forecasts for global oil demand in 2021 and 2022 as the looming energy crisis forces industry to switch to oil.
The IEA forecasts that global oil demand will increase by 5.5 million bpd to 96.3 million bpd in 2021 and by 3.3 million bpd to 99.6 million bpd in 2022.
Gold contracts open the market down again as rising U.S. bond yields continue to put pressure. Investors sell safe-haven assets such as gold after the U.S. government released strong economic data.
The gold price fell $29.6, or 1.65%, to $1,768.3 per ounce.
Silver contracts fell 12.8 cents, or 0.55%, to $23.349 an ounce.
Platinum was up $6.6, or 0.63%, at $1,058.9 per ounce.
Palladium contracts rose $74.30, or 3.5%, to $2,076.60 an ounce.
Better-than-expected U.S. retail data for September pointed to strong consumer spending. The Christmas season is just around the corner and consumers usually spend more than usual at this time. In addition, this could also be an indicator of inflation, as consumers are concerned that prices may continue to rise in the future. This could lead consumers to buy more goods at this time.
September retail sales up 0.7% vs. expected -0.2% y/y at 13.9
Retail sales excluding the automotive segment rose by 0.8% year on year, representing an increase of 15.6%.
While the US Treasury yield rose 1.574%.
The US dollar is weakening.
Investors reduce their holdings of the dollar as a safe-haven currency, following the release of retail sales data.
The movement index of the dollar against the six other major currencies in a basket of currencies was 0.02% lower at 93.9394.
The US dollar weakened against the Swiss franc to 0.9227 francs from 0.9233 francs.
The dollar was higher at 114.26 yen from 113.66 yen.
The US dollar was higher at 1.2383 Canadian dollars from 1.2368 Canadian dollars.
The euro was higher against the dollar at $1.1605 from $1.1599.
The pound rose to $1.3748 from $1.3686.
The Australian dollar rose to $0.7420 from $0.7417.
The Spot Market is Open
Monday, October 18, 2021