(MT Newswires) – -Crude ended in negative territory for the week, with the weakness in oil prices as traders mulled signs that the US again inched closer to becoming the world’s largest oil producer; this, however, was counterbalanced by risks to the global output from geopolitical worries in Iran and cuts in Venezuela. Data from energy services firm Baker Hughes (BHGE) showed the number of oil rigs operating in the US over a rolling seven-day period ending June 8 rose by one to 862, its highest level since March 13, 2015. Earlier in the week, the EIA reported that domestic supplies of natural gas rose by 92 billion cubic feet for the week ended June 1. The increase was in line with average expectations of analysts surveyed by S&P Global Platts. Total stocks now stand at 1.817 trillion cubic feet, down 799 billion cubic feet from a year ago, and 512 billion below the five-year average. Meanwhile, oil prices have been undermined by the continuing economic crisis in Venezuela, which has forced cuts to the beleaguered country’s oil production. Additionally, the US plans to reinstate sanctions against Iran, the third-biggest producer in the Organization for Petroleum Exporting Countries (OPEC), which also is likely to hit crude production and exports.
Over the last five days, light, sweet crude oil for July delivery was down 0.12% and closed at $65.74 per barrel. In other energy futures, gasoline fell during the week, down 0.09% and settled at $2.12 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 2.68% lower this week and was down in Friday’s session at $2.89 per 1 million British thermal unit.
The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 0.09% this week, from an increase of 0.45% in the previous week.
Gold ended the Friday session higher, settling at $1,302.70 to finish the week 0.40% higher, benefiting from its safe haven appeal, and equities floundered as tensions flared between long-time allies ahead of the G7 summit in Canada. President Donald Trump sent out a series of provocative tweets aimed at France and Canada in retaliation to their support of excluding the US from a joint G7 statement. Earlier in the week, gold had seen some modest gains as the dollar weakened versus the euro, amid hopes that Italy’s coalition government can get the nation’s economy into high gear. Meanwhile, copper was up at Friday’s session, settling at $3.30, and was 6.63% higher in the last five days. The surge in prices was sparked by concerns over the labor talks at BHP Billiton’s Escondida mine in Chile, which have remained unresolved, and consequently raised fears that mine output, which contributes to about 5% of global copper supply, could be affected.
Agriculture commodities ended the week mostly lower: sugar had a weekly decline of 2.16% and settled at a price of $0.12 per ton on Friday; coffee was at $1.23 per pound at Friday’s close, with a weekly drop of 4.44%; and cocoa fell 3.42% for the week and closed Friday’s at $2,393. Among grains, corn was down 3.52% in the week and settled at $3.78 per bushel in Friday’s session; and wheat was up 0.05% for the week and settled at $5.20 per bushel at the end of Friday’s session. Soybeans had a weekly decline of 5.37%, closing at $9.69 per bushel on Friday. This weekly decline is the biggest since August 2017 amid expectations for a bumper crop in North America, following forecasts for beneficial rains in the US Midwest.
The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) fell 1.84% for the week, compared with an increase of 3.13% in the prior week.
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