Business News Asia
Another positive week for the oil bulls more precisely the 9th week in a row in which oil prices could rise.
WTI crude oil was able to gain 1.8% and closed on Friday at $83.98 per barrel.
Brent crude oil was able to gain 0.79% and closed at $85.72 per barrel.
On Tuesday, it looked for a short time as if this was the first week in a long time in which oil prices would fall after Russia’s President Putin let it be known that OPEC + will possibly pump more barrels than previously announced. In fact, Putin has the reins not only for crude oil but also for natural gas. Whether Russia or OPEC+ will come to the rescue, however, remains to be seen.
During the week, the EIA had surprised by reports that U.S. crude oil inventories had unexpectedly fallen. Analysts had predicted a further increase in inventories, but the oil stocks have fallen by 431,000. In addition, crude oil reserves fell further to 31.2 million barrels, after the reserves had already fallen last week to a 3-year low of 33.6 million barrels. The message had brought the crude oil prices a regular push into the weekend since on the fast no possibility exists to stock up the reserves.
Thermal coal prices have dropped for the first time in a while, falling 3.7% this week to $233 per ton. Thus, the Chinese government seems to be successful with its measures to ease prices. Beijing had ordered its coal mines to produce the maximum amount of coal at any price. With this, Beijing wants to counteract the rising coal prices and the power cuts in the country. Previously, many companies in the country had complained about the lack of electricity, which is hurting the economy.
Natural gas prices also fell, down 2.4% to $5.31/MMBtu. Natural gas prices in Asia, meanwhile, have risen to $35 per MMBtu and in Europe to $40/MMBtu
Uranium prices rallied again this week, up a whopping 14.2% to $45.90 per 250 pounds of U308. The shares of the major uranium producers also gained.
- Cameco (NYSE: CCJ) up 3.76%,
- JSC National Atomic Company Kazatomprom up 1.84% to $44.30,
- Uranium Energy Corp. (NYSE: UEC) up 14.96% to $3.92.
- Uranium Royalty Corp. (NASDAQ: UROY) up 18.14% to $5.6.
The uranium bet remains hot and that despite the fact that nothing big has happened in the market. What will happen when market demand really picks up? Uranium is likely to remain a hot topic for years to come because it is the cleanest and most reliable energy source.
The gold price could close the week again in the plus which means the second week in a row. Towards the end of the week, the gold price has even jumped above $1,800 to $1,813 but had to give up a short time later again after Fed Chairman Powell announced to be ready to start the tapering of the quantitative easing program. The launch is expected to take place between November and December. At the moment, the Fed is buying $120 billion worth of assets per month. However, the gold price was able to quickly recover and closed the week at $1,793.35 per ounce.
Silver prices were also able to close positively again with a gain of 3% at $24.39 per ounce. The future narrative for silver is certainly bullish as the price should rise not only due to rising inflation but also due to rising demand. Silver remains irreplaceable for the industry and an essential component for all future technologies.
The price of platinum fell 1.6% this week to $1,044 per ounce.
The price of palladium fell 2.43% this week to $2,017.50 per ounce.
Magnesium has caused a stir this week after the news made the rounds that there could be a shortage here as well. The main magnesium producer China has cut magnesium production due to the energy crisis in the country. The EU now wants to talk with China to reach an agreement. About 95% of the magnesium used in the EU comes from China. Magnesium is used for the production of aluminum. Especially the automotive industry could suffer from the consequences as many engine parts and car body parts are made of aluminum. In addition, magnesium cannot be stored for a long time because it starts to oxidize after 3 months. Current stockpiles are trading from $10,000 up per ton in Europe right now from $2,000 earlier in the year.
Aluminum fell 8% this week to $2,868.15 per ton.
Lead rose 0.54% to $2,461.90 per ton.
Iron ore fell 0.56% to $122.89 per ton.
Copper fell 4.8% to $9,990.85 per ton.
Nickel rose 3.36% to $20,355.00 per ton.
Zinc fell 5.6% to $3,494.25 per ton.
Tin fell 0.71% to $38,847.50 per ton.