(MT Newswires) – Crude prices ended the week higher, as investors increasingly see efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other oil producing countries to curb output succeeding – and supporting prices this year. OPEC and its allies agreed in early December to trim 1.2 million barrels per day from the market for the first six months of 2019, and possibly beyond after assessing the market again at a meeting scheduled for April. Also helping buoy crude prices were hopes that the US and China can reach a reasonable trade deal before a March 2 deadline, although this optimism slowly dwindled as the week went on. Three days of US-Chinese talks aimed at ending a costly tariff battle wrapped up Wednesday on a high note, with China’s Commerce Ministry saying that the two sides held an “extensive, in-depth, and detailed exchange” on trade issues, including structural factors. Further negotiations are set to follow this month. Meanwhile, the latest data from the Energy Information Administration showed that domestic crude supplies fell by 1.7 million barrels for the week ended Jan. 4, compared with expectations for a decline of 1.4 million barrels in crude supplies, according to S&P Global Platts estimates. The American Petroleum Institute had said Tuesday that US crude oil stocks fell 6.1 million barrels. Finally, Baker Hughes (BHGE) said Friday that the number of oil rigs operating in the US fell by four to 873, the third consecutive sequential decline. It was the lowest level since Dec. 14. A year ago, the US oil rig count was at 752. The North American total was higher by 108 in the week to 1,259, also up from the year-ago tally of 1,215.
Light, sweet crude oil for February delivery rallied 6.98% for the week, settling at $51.59 per barrel at the end of Friday’s session. In other energy futures, gasoline rose during the week, up 3.60% and settling at $1.40 per gallon on Friday. Natural gas for March delivery jumped 3.58% this week at $2.95 per 1 million British thermal unit.
The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) was 1.72% higher this week, compared with an increase of 0.44% in the previous week.
Gold closed the Friday session in positive territory, closing at $1,289.50, to end the week 0.18% higher, but failing to breach the psychologically important $1,300-an-ounce level. The yellow metal managed to settle higher after equities lost some ground due to profit taking and on concerns about the ongoing government shutdown and skepticism about a potential trade deal between the US and China. Recent comments by Federal Reserve Chairman Jerome Powell that the central bank will be patient in determining when to hike interest rates weighed on the greenback earlier in the day. However, the currency forced its way up against most major currencies as the session progressed and the dollar index edged up slightly to 95.20. One of the key economic data releases during the week was the December consumer price index, which slipped by 0.1% after coming in unchanged in November. Excluding food and energy prices, the core consumer price index rose by 0.2% in December, matching the increases seen in the two previous months as well as expectations. On the other hand, copper also benefitted from the positive US-China trade developments as well as from the dovish statements from the Federal Reserve, which in turn pushed the dollar lower. Copper ended Friday’s session up at $2.66 per pound and up 0.49% for the last five days – the biggest weekly gain since mid-November.
Agriculture commodities ended the week mixed: among grains, wheat rose 0.73% and settled at $5.20 per bushel at the end of Friday’s session; corn was down 0.98% in the week and settled at $3.78 per bushel in Friday’s session; and soybeans fell 1.27% for the week, closing at $9.10 per bushel on Friday. This was the first time in the last three weeks that soybeans fell, slipping to the weakest level since Jan. 3, as the market awaits more purchases from China. Also, Brazil is set to harvest its soybean crop and will therefore provide some competition for US soybeans. Meanwhile, other commodities closed higher on the week; sugar had a weekly increase of 6.96% and settled at a price of $0.13 per pound on Friday; coffee was around $1.04 per pound at Friday’s close, up 2.31% for the week; and cocoa rose 0.08% for the week and closed Friday’s session at $2,356 per tonne.
The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) was 0.68% lower for the week, compared with the 0.25% increase in the prior week.
Copyright © 2019 MT Newswires, www.mtnewswires.com.
Information Contact: Justin Hillstrom – 720.917.0770 Email: Justin.email@example.com, Website is www.uscfinvestments.com
Investing involves risks, including loss of principal.
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.