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Weekly Commodities ETF Report: Crude Ends Higher on Tighter Supplies; Gold Slips Lower as Positive China Data Helps Ease Global Growth Worries

(MT Newswires) – Crude ended Friday’s session higher, hitting $64 a barrel early in the week, on expectations for tighter supplies amid continued fighting in Libya, tighter US sanctions on Venezuela, and sharply lower oil production from the Organization of the Petroleum Exporting Countries (OPEC). Forces under Libya’s UN-backed government said Sunday they had started a counter-attack against the forces of Khalifa Haftar after he launched an offensive to seize Tripoli, escalating an ongoing power struggle in the oil-rich country. Meanwhile, the US Treasury Department imposed sanctions on two companies operating in Venezuela’s oil sector, in a move announced on Friday. The measures appeared designed to also hit at Cuba, which imports energy from the Latin American country. Finally, oil production from OPEC member countries and its allies fell by 534,000 barrels a day month-on-month, to average 30.02 million barrels a day in March.

Stockpiles of commercial crude in the US climbed more than expected at the beginning of the month, posting a third-straight weekly build, according to data from the Energy Information Administration. Inventories increased by seven million barrels in the week through April 5, reaching 456.5 million barrels and holding in line with the five-year average for this time of year. The build was greater than reports late Tuesday that showed the American Petroleum Institute was expecting an advance of 4.1 million barrels for crude in the week. And, energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US rose by two to 833, after jumping by 15 last week. The combined oil and gas rig count in the US, however, fell by three to 1,022 as gas rigs slid by five to 189.

Light, sweet crude oil for May delivery rose 0.85% for the week, settling at $63.89 per barrel at the end of Friday’s session. In other energy futures, gasoline was up 2.81% during the week and settling at $2.04 per gallon on Friday. Natural gas fell 0.97% on the week, closing Friday at $2.66 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 0.52% higher this week, compared with an increase of 1.62% in the previous week.

Gold wrapped up the Friday higher, but ended the week with modest losses of 0.12%, settling at $1,295.20. The yellow metal reached more than $1,300 an ounce on Wednesday following weakness in the US dollar ahead of the earnings season. This, however, reversed by Thursday, with gold prices sinking to a two-week low as upbeat economic data from China helped ease concerns over a slowdown in global growth, which in turn limited demand for haven metals. On Thursday, China said its consumer price index (CPI) in March rose 2.3% year-on-year —  just short of estimates but at the quickest pace since October 2018. Meanwhile, the producer price inflation (PPI) rose 0.4% on-year in March in line with expectations. And on Friday, China reported that its exports for the month of March rose sharply by 14.2% year over year, beating expectations, while imports witnessed an on-year decline of 7.6%, below estimates. The March trade surplus was $32.64 billion. Meanwhile, the same data helped lift industrial metals like copper, as traders deemed the data indicative of increased demand from China. Copper closed Friday’s session at $2.95 per pound, up 1.82% for the week.

In agriculture commodities, grains ended the week lower: corn fell 0.35% in the week and settled at $3.61 per bushel in Friday’s session; wheat slipped 0.69% and settled at $4.65 per bushel at the end of Friday’s session; and soybeans declined 0.39% for the week, and closed Friday at $8.95 per bushel. Other commodities were also in the negative: sugar had a weekly decline of 0.16% and settled at a price of $1.28 per pound on Friday; coffee was around $0.90 per pound at Friday’s close, down 3.17% for the week; and cocoa was down 0.04% for the week and closed Friday’s session at $2,407 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was up 0.06% for the week, compared with the prior week’s rise of 1.35%.

Copyright © 2019 MT Newswires, www.mtnewswires.com.

 

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER 

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Waste Management to Acquire Advanced Disposal for $4.9 Billion

7:37 AM, Apr 15, 2019 — Waste Management (WM) has agreed to acquire Advanced Disposal Services (ADSW) in a deal worth approximately $4.9 billion as it seeks to grow its asset footprint in the Eastern half of the US.

The deal will see a subsidiary of Houston, Texas-headquartered Waste Management acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash. It represents a total enterprise value of $4.9 billion when including approximately $1.9 billion of Advanced Disposal’s net debt.

Waste Management said that it expects the transaction to generate more than $100 million in annual cost and capital expenditure synergies. It said that the Advanced Disposal acquisition would be immediately accretive to Waste Management’s adjusted earnings per share and cash flow, with near-term benefits expected from core operating performance and selling,general and administrative cost savings.

“With this acquisition, we will grow our asset footprint to serve more customers and communities and generate significant growth and value creation opportunities for Waste Management’s shareholders and our combined company’s employee base,” Jim Fish, chief executive of Waste Management, said.

Advanced Disposal had revenues of $1.56 billion in 2018 and approximately 6,000 employees. It serves more than three million residential, commercial, and industrial customers, including over 800 municipalities primarily in 16 states in the Eastern half of the United States.

Price: 104.00 Price Change: +2.21 Percent Change: +2.17

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Snapchat Seen Losing Users in the US This Year After Unpopular App Redesign, eMarketer Says

1:58 PM, Apr 10, 2019 — Snap’s (SNAP) shares sank on Wednesday as industry research firm eMarketer projected a decline this year in Snapchat’s monthly US users, with the losses coming as its struggles in the wake of an unpopular redesign of the social-media company’s app.

Snapchat will have 77.5 million monthly US users this year, down 2.8% from last year and well below an earlier prediction that was calling for growth of 6.6% to 90.4 million users. Growth is expected to flatten in 2020, eMarketer said in a statement Wednesday.

“Many users didn’t like how Stories and chats were mixed together in a confusing redesign that went into effect in late 2017 and was broadly available by early 2018,” said Showmik Podder, a forecasting analyst at eMarketer. “The backlash was so severe that Snapchat was forced to scale back some of the changes just a few months later.”

Snapchat’s shares were down more than 5% in afternoon trading, stemming a four-day run of gains.

Pulling back the changes wasn’t enough to prevent this year’s dip, eMarketer said, and they forecast that between 2019 and 2023, Snapchat will add just 600,000 new US users.

The 2020 growth rate of 0.4% is seen remaining below that of general US social network usage of 2.4%. Rising competition is also taking some blame for Snapchat’s decline, with Facebook’s (FB) Instagram seen picking up many of the people who opt to leave.

“But the product launches the company announced last week, including an in-app gaming platform, may improve user engagement and time spent, particularly among its core young user base,” said Jasmine Enberg, a senior analyst. “Gaming also provides a new revenue stream for Snapchat that could boost its ad business in the future.”

Companies: Snap Inc.
Price: 11.76 Price Change: -0.59 Percent Change: -4.78

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Weekly Commodities ETF Report: Crude Logs Gains on Lower Output From Saudi Arabia, Venezuela; Gold Logs Losses Following Strong March Jobs Data

(MT Newswires) – Crude ended Friday’s session higher, as oil production cuts by Saudi Arabia and declines in Venezuelan output have worn away the balance in surplus that was posted in the fourth quarter of last year. Back home, stockpiles of commercial crude in the US posted a bigger jump than expected last week, growing for a second straight week and coming in line with the five-year average for this time of year, government data showed on Wednesday. Inventories, an indicator of crude production in the world’s biggest economy, rose by 7.2 million barrels in the week through March 29, to 449.5 million barrels, data from the Energy Information Administration showed. A week earlier, the stockpiles increased by 2.8 million barrels. The advance was greater than reports late Tuesday that showed the American Petroleum Institute was expecting an increase of 3 million barrels in the stockpiles. Finally, energy services firm Baker Hughes (BHGE) reported Friday that the average US rig count for March was 1,023, down 26 from the 1,049 counted in February, but up 34 from the 989 counted in March 2018.

Light, sweet crude oil for May delivery rose 5.15% for the week, settling at $63.08 per barrel at the end of Friday’s session. In other energy futures, gasoline was up 4.88% for the week, settling at $1.97 per gallon on Friday. Natural gas fell 0.11% this week at $2.66 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 1.62% higher this week, compared with a decline of 0.55% in the previous week.

Gold wrapped up the Friday session with gains, settling at $1,295.60 but closed the week down 0.1%.  Gold trended lower as equities turned positive, especially following the March employment report, which came in better than expected at 196,000 jobs, rebounding from 33,000 in the prior month. The total was above the 170,000 estimate pegged by Econoday. The jobless rate was unchanged at 3.8%, near a 50-year low. But fears of a global economic slowdown, as well as geopolitical events, like the UK’s attempts to exit from the European Union, have kept gold’s losses in check. Meanwhile, copper closed Friday’s session at $2.89 per pound, down 1.43% for the week, as reservations over the US-China trade deal remained, despite upbeat progress in negotiations between the two countries. Media reported that, before a meeting with Chinese Vice Premier Liu He, US President Donald Trump said a number of tough issues holding back a US-China trade deal had been resolved but differences remain. “Within the next four weeks or maybe less, maybe more, whatever it takes, something very monumental could be announced,” Trump was cited as saying.  Meanwhile, copper closed Friday’s session down at $2.89 per pound, falling 1.47% on the week.

In agriculture commodities, grains ended the week lower: corn rose 1.47% in the week and settled at $3.63 per bushel in Friday’s session; wheat climbed 1.85% and settled at $4.68 per bushel at the end of Friday’s session; and soybeans were up 1.67% for the week, and closed Friday in the red at $8.99 per bushel. Other commodities were mixed: sugar had a weekly increase of 1.76% and settled at a price of $1.28 per pound on Friday; coffee was around $0.93 per pound at Friday’s close, down 0.95% for the week; and cocoa was up 5.83% for the week and closed Friday’s session at $2,413 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was up 1.35% for the week, compared with the prior week’s decline of 1.83%.

 

Copyright © 2019 MT Newswires, www.mtnewswires.com.

 

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER  

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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General Electric Fined $59 Million by EC for ‘Incorrect’ Information in LM Wind Takeover

7:18 AM, Apr 8, 2019 — The European Commission(EC) has fined General Electric (GE) 52 million euros ($58.5 million) for providing what it described as “incorrect information” during its investigation of GE’s planned acquisition of blade manufacturer LM Wind.

The Commission said that the fine had no impact on its approval of the transaction under EU merger rules, as this was based on rectified information from General Electric provided after the Commission alleged that the erroneous information had been provided.

In January 2017, GE notified its proposed acquisition of LM Wind. In the notification, the EC said that GE had stated that it did not have any higher power output wind turbine for offshore applications in development, beyond its existing 6 megawatt turbine. However, through information collected from a third party, the Commission said that it had found that GE was simultaneously offering a 12 megawatt offshore wind turbine to potential customers.

As a result, GE withdrew its notification of the acquisition of LM Wind on February 2 2017 and on February 13 2017 GE re-notified the same transaction, this time including complete information on its future project, according to the EC. On March 20 2017, the Commission approved the proposed acquisition.

“Our merger assessment and decision-making can only be as good as the information that we obtain to support it. Accurate information is essential for the Commission to take competition decisions in full knowledge of the facts,” Commissioner Margrethe Vestager, in charge of competition policy, said. “The fine imposed today on General Electric is proof that the Commission takes breaches of the obligation for companies to provide us with correct information very seriously.”

Price: 9.47 Price Change: -0.54 Percent Change: -5.39

 

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Walgreens Boots Alliance Lowers Full Year Guidance After Disappointing Second Quarter

7:59 AM, Apr 2, 2019 — Walgreens Boots Alliance (WBA) lowered its full year guidance early on Tuesday as it posted a drop in its second quarter adjusted earnings per share which were impacted by reimbursement pressure and consumer challenges in the US and UK.

The pharmaceutical operator posted fiscal second quarter adjusted earnings of $1.64 per share in the quarter ended February 28, down from $1.73 in the same period a year ago, falling short of the consensus estimate of analysts polled by Capital IQ for $1.72.

Total revenue came in at $34.53 billion, up from $33.02 billion in the same period a year ago but nevertheless below the Street’s projection of $34.57 billion.

It said that the quarter had been its most difficult to date since the formation of Walgreen’s Boots Alliance, highlighting that there had been significant reimbursement pressure, compounded by lower generic deflation, as well as continued consumer market challenges in the US and UK.

“We are going to be more aggressive in our response to these rapidly shifting trends,” Stefano Pessina, chief executive of Walgreen’s Boots Alliance, said. “We are focusing on our operational strengths and addressing weaknesses, making a number of senior appointments to bring change and accelerating the digitalization and transformation of our business”.

Pessina added that this would include expediting the execution of the company’s partnership initiatives and increasing the annual savings goal of its cost management program from in excess of $1 billion to more than $1.5 billion.

Full year adjusted earnings per share growth is expected to be roughly flat at constant currency rates, compared with previous guidance of 7% to 12% growth.

Price: 58.80 Price Change: -4.69 Percent Change: -7.39

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Weekly Commodities ETF Report: Crude Ends Week Higher as Pressure on Supplies Continues; Grains Lower as Traders Digest USDA Reports

(MT Newswires) – Crude oil ended Friday’s session higher, as supply issues continued to help boost prices. US sanctions against Iran and Venezuela have put pressure on global supplies, amid signs that Russia is chafing against the pact it made with the Organization for the Petroleum Exporting Countries (OPEC) to cut global output by around 1.2 million barrels per day. Saudi Arabia, one of the leading member countries of OPEC, is said to be in the process of convincing Russia to remain with the pact. OPEC cancelled a meeting planned for April, which means that the organization’s supply cuts will last through at least June when the next meeting is scheduled. Meanwhile, US President Donald Trump has once again taken to Twitter to demand an increase in production from OPEC to keep prices lower. Back home, the Energy Information Administration reported that US stockpiles grew by 2.8 million barrels to 442.3 million barrels during the seven days ended March 22. The Street had been expecting a decrease of 1.0 million barrels. Late Tuesday, the American Petroleum Institute said that crude inventories climbed by 1.9 million barrels last week, according to reports. Finally, energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US fell by eight to 816 in the week, edging closer to the lowest level since last April.

Light, sweet crude oil for May delivery rose 2.00% for the week, settling at $60.14 per barrel at the end of Friday’s session. In other energy futures, gasoline was down 0.27% for the week, settling at $1.88 per gallon on Friday. Natural gas fell 3.61% this week at $2.66 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 0.55% lower this week, compared with an increase of 0.20% in the previous week.

Gold wrapped up the Friday session with gains but failed to cement its grip on the $1,300 mark, instead settling at $1,298.50; for the week, the yellow metal fell 1.73%. Gold has recently benefitted from its safe-haven status amid worries over a slowdown in global economic growth. Lower bond yields have also pushed gold higher, but pressure on the bond markets has eased somewhat following positive developments in the US-China trade talks. The US 10-year bond yields rose to 2.42% intraday, rebounding from their lowest level in 16 months on Wednesday, after Treasury Secretary Steven Mnuchin wrote in a Twitter message: “US Trade Representative and I concluded constructive trade talks in Beijing. I look forward to welcoming China’s Vice Premier Liu He to continue these important discussions in Washington next week.” Trade optimism also helped the equity market tide over downbeat data from the US Commerce Department, as the increase in US consumer spending in January missed expectations a day after it emerged that the pace of economic growth slowed in the fourth quarter. Data released on Friday also show incomes rose modestly in February, while savings dropped to $1.19 trillion last month from $1.22 trillion in January. Also benefitting from the upbeat trade news are industrial metals such as copper, which closed Friday’s session at $2.94 per pound, rising 2.91% for the week.

In agriculture commodities, grains ended the week lower following the release of the US Department of Agriculture’s report on Grain Stocks, as well as its report on Prospective Plantings: corn fell 5.81% in the week and settled at $3.57 per bushel in Friday’s session; wheat slipped 1.24% and settled at $4.58 per bushel at the end of Friday’s session; and soybeans were down 2.24% for the week, and closed Friday in the red at $8.84 per bushel.

According to the USDA Grain Stocks report for March 2019, corn stocks were down 3%; soybean stocks were up 29%, and all wheat stocks were up 6%. Meanwhile, the Prospective Plantings report showed that corn planted acreage for 2018 was down 2% year over year; soybean acreage was down 1%; and all wheat acreage was up 3%.

Other commodities were mixed: sugar had a weekly decline of 0.48% and settled at a price of $1.25 per pound on Friday; coffee was around $0.95 per pound at Friday’s close, up 0.53% for the week; and cocoa was up 5.88% for the week and closed Friday’s session at $2,280 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was down 1.83% for the week, compared with the prior week’s increase of 0.94%.

 

Copyright © 2019 MT Newswires, www.mtnewswires.com.

 

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHN, or CPER

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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Rio Tinto Sees Cyclone Veronica Denting Western Australia Iron-Ore Production by 14 Million Tonnes

8:35 AM, Apr 1, 2019 — Rio Tinto (RIO) said the impact of a cyclone in western Australia and a fire in January at an iron ore terminal will result in the loss of about 14 million tonnes of production this year.

The London-based mining giant said in a statement on Monday that operations in the Pilbara region of Australia are “progressively resuming” after Tropical Cyclone Veronica passed through the area last week and brought heavy rainfall.

“Initial inspections uncovered some damage to the Cape Lambert A port facility,” the company said. “As a result, Rio Tinto has declared force majeure on certain contracts and is working with its customers to minimize any disruption in supply.”

Cape Lambert A is an iron ore terminal that Rio Tinto said is capable of loading more than 85 million tonnes per year. The impact of the cyclone and repairing damage to the port’s facilities comes after the site suffered damage from a fire in January, the company said.

According to Rio Tinto’s website, the Cape Lambert A and B port has a total capacity of about 205 million tonnes annually and is a joint venture between Rio Tinto, with 53% ownership, Mitsui at 33% and Nippon Steel & Sumitomo Metal Corp. with a 14% stake.

Rio Tinto said that shipments from the Pilbara in 2019 are expected to be at the lower end of the 338 million to 350 million tonnes guidance provided as a result of the loss of the 14 million tonnes of output this year.

The Cape Lambert A shipments mainly include Hamersley Iron Yandicoogina, or HIY, and Robe River products. Rio Tinto said that in 2018, it shipped 57.4 million tonnes of HIY and 32 million tonnes of Robe River products.

Companies: Rio Tinto Plc
Price: 60.72 Price Change: +1.87 Percent Change: +3.18

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Scotiabank Sees Oil Prices Stuck to Upper End of $50 to $60 Range as Output Set to Hold Steady

2:09 PM, Mar 29, 2019 — Trends in oil supplies are expected to keep prices for West Texas Intermediate “tethered to the upper end” of a $50 to $60 a barrel shale band, according to Scotiabank Economics.

The most recent production cuts by the Organization of the Petroleum Exporting Countries plus non-OPEC nations have been in place for three months, Rory Johnston, a commodity economist with the bank, said in a note. That’s been supporting WTI price gains of about $5 a barrel in the month to about $60, prompting President Trump to remind producers that supply should be kept loose, he said.

“While the president’s tweet knocked WTI back by a dollar or two intraday, we expect that OPEC+ will stay the course and crude prices will average around current levels through the remainder of the year,” Johnston said. WTI was trading at $60.12 a barrel Friday.

OPEC cancelled a meeting planned for April, “effectively extending the organization’s supply cuts through at least June when the next meeting is scheduled,” he said. “We expect OPEC+ to maintain production discipline and supply risks across the producer group appear tilted to the bullish side, though the market seems unwilling to let prices drift far above $60” a barrel.

Western Canadian Select has performed better than the major global benchmarks, holding a discount to WTI through March of just more than $10 a barrel. That’s a level lower than Scotiabank believes is needed to incentivize growth in oil-by-rail capacity.

Johnston said Asian liquefied natural gas prices prices tumbled in March amid weather in China, Japan and South Korea that was warmer than usual for winter. The market for iron ore has rallied as production uncertainty followed the fatal Vale (VALE) tailings dam collapse in Brazil in January disruptions from a cyclone that impacted ports in western Australia.

Scotiabank lifted its iron-ore price forecast to $76 a tonne in 2019 and $71 in 2020, the economist said.

“Currently-high prices are expected to bring previously idled Chinese mine supply back to the market, while seaborne demand for ore is also forecast to rise over the coming months as Chinese building activity revs out of its annual Lunar New Year lull and environmental winter production curtailments end in April,” Johnston said.

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Weekly Commodities ETF Report: Crude Ends Week Higher as Global Growth Fears Undermine Demand for Oil Amid Supply Concerns; Gold Higher on Weak Economic Data From US, Eurozone

(MT Newswires) – Crude prices ended Friday’s session lower on concerns that the global economy is slowing, undermining the case for growth in demand for oil, but over the last five days prices rose, as supply fundamentals improved recently from concerted producer action as well as involuntary output cuts in Iran and Venezuela. The collapse of the Iran nuclear accord last year and placing of US sanctions on Tehran in November had mostly prevented a bulk of the country’s oil from reaching international markets. Meanwhile, Venezuela’s largest crude exporter had also been slapped with US sanctions amid the political crisis in the country, further reducing global crude supplies. Back home, the Energy Information Administration reported that US stockpiles slumped by a surprise 9.6 million barrels over the past week, underpinning the recent strength in prices from producer action. This also compares with the American Petroleum Institute’s report that US crude inventories had a draw of 2.133 million barrels. Finally, energy services firm Baker Hughes (BHGE) reported Friday that the number of oil rigs operating in the US dropped to the lowest level in 11 months. The tally, an indicator of future production levels, sank by 11, the fifth-straight weekly decrease, to 824 through Friday. The US gas-rig count slipped by one to 192, bringing the country’s total decline in the week to 1,016 rigs from 1,026 a week earlier.

Light, sweet crude oil for May delivery rose 0.17% for the week, settling at $59.04 per barrel at the end of Friday’s session. In other energy futures, gasoline was up 2.48% during the week, settling at $1.89 per gallon on Friday. Natural gas for May delivery fell 0.86% this week at $2.77 per 1 million British thermal unit.

The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 0.20% higher this week, compared with an increase of 0.74% in the previous week.

Gold wrapped up the Friday session with slight gains, settling at $1,312.30; for the week, it rose 0.84%, after the spread between three-month US treasury bills and 10-year note yields inverted for the first time since 2007, a year before the global financial crisis began with the collapse of Lehman Brothers in 2008. The inversion in the yield curve coincided with twin reports from IHS Markit that showed a decline in the purchasing managers’ index for US manufacturing to the lowest level since June 2017. The same gauge for the Eurozone slipped, declining more than the market expected, exacerbating fears of a fall in demand for a slowdown in the growth of the global economy. These downbeat economic reports came just a day after the US Federal Reserve Chairman Jerome Powell dialed back expectations of interest rate hikes, signaling no increases at all in 2019 and referencing to the disconnect between wage growth and inflation, which is currently at a considerable distance from the Fed’s 2% target.

On the other hand, copper closed Friday’s session at $2.84 per pound and sank 2.08% for the week, tracking the base metals sector lower on the renewed strength of the US dollar. The greenback benefitted from weakness in the pound sterling as the UK struggled with its exit from the European Union. Legislators have not approved Prime Minister Theresa May’s Brexit deal so far, but EU leaders have offered to delay the Brexit withdrawal date until May 22 if the deal could be approved. A delay until April 12 has also been proposed if there is another failure to pass. Meanwhile, an online petition calling for the country to remain in the EU has reached some 3.5 million signatures.

In agriculture commodities, grains ended the week mostly higher: corn rose 1.54% in the week and settled at $3.78 per bushel in Friday’s session; wheat rose 1.03% and settled at $4.66 per bushel at the end of Friday’s session; and soybeans was down 0.55% for the week, and closed Friday in the red at $9.04 per bushel. Corn ended Friday’s session near one-month highs as flash flooding in a major North American producing region exacerbated fears that crop planting would be further delayed.

Other commodities were mixed: sugar had a weekly decline of 0.56% and settled at a price of $1.26 per pound on Friday; coffee was around $0.94 per pound at Friday’s close, down 3.89% for the week; and cocoa was down 1.73% for the week and closed Friday’s session at $2,159 per tonne.

The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was up 0.94% for the week, compared with the prior week’s decline of 2.19%.

 

Copyright © 2019 MT Newswires, www.mtnewswires.com.

 

Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.hillstrom@alpsinc.com, Website is www.uscfinvestments.com

Investing involves risks, including loss of principal.

Commodity ETP Disclosures:  Download a copy of a Fund’s Prospectus by clicking one of the following:
USCIUSAGUSOUSLUSOUDNOUSODBNOUNGUNL, UGAUHNor CPER

Please read any Prospectus carefully before investing.

These Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Commodity trading is highly speculative and involves a high degree of risk. Commodities and futures generally are volatile and are not suitable for all investors. Investing in commodity interests subject each Fund to the risks of its related industry. An investor may lose all or substantially all of an investment. These risks could result in large fluctuations in the price of a particular Fund’s respective shares. Funds that focus on a single sector generally experience greater volatility. Leveraged and inverse exchange-traded products pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They are not suitable for all investors and should be utilized only by investors who understand leverage risk and who actively manage their investments. For further discussion of these and additional risks associated with an investment in the Funds please read the respective Fund Prospectus before investing.

Please read the Prospectus carefully before investing.

Performance is historical and does not guarantee future results; current performance may be lower or higher. Investment returns/principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Most recent performance is available at www.uscfinvestments.com.

Past performance does not guarantee future results.

This information is intended for U.S. residents.

Funds distributed by ALPS Distributors, Inc. 

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