Overview of natural gas and Copper market
2023.01.26 11:23
Overview of natural gas and Copper market
Budrigannews.com – Gas prices in the United States have fallen to their lowest levels since May 2021, putting pressure on European prices as well.
On Tuesday, ICE settled virtually unchanged, with little new information. The most recent inventory report from the EIA revealed that US crude oil inventories increased by 533 million barrels per day over the previous week.
This was lower than the 3.38 MMbbls build that the API had reported the day before. However, Cushing saw a stock increase of 4.27 million barrels, bringing the total inventory at the WTI delivery hub to 35.69 million barrels, the highest level since December 2021.
The decline in the prompt WTI spread, which is currently trading in contango, has occurred simultaneously with the buildup in Cushing. Over the past week, refined product stock movements were relatively insignificant. While distillate fuel oil stocks decreased by 507 million barrels, gasoline inventories rose by 1.76 million barrels.
Henry Hub fell below US$3/MMBtu yesterday for the first time since May 2021, adding to the pressure on US natural gas prices. The drawdown of gas storage has been much smaller than is typical for this time of year due to milder weather.
Chairman Maximo Pacheco disclosed on Tuesday that Codelco, the largest producer in the world, produced 172,000 fewer tonnes of copper in 2022, a decrease of 10% from 2021. In 2022, Codelco is expected to produce 1.446 million tonnes of copper, up from 1.618 million tonnes in 2021.
According to Pacheco, operational issues accounted for 77% of the reduction, while project delays accounted for 23%.
Despite supply concerns in South America and continued optimism regarding China’s reopening, copper continued to trade around its highest level in more than seven months.
This distribution has been arranged by exclusively for data purposes independent of a specific client’s method, monetary circumstance or venture targets. The data doesn’t comprise venture suggestion, and nor is it speculation, legitimate or burden guidance or a proposition or sales to buy or sell any monetary instrument.
