(MT Newswires) – – Crude ended in negative territory for the third straight week on concerns about rising supplies and amid fears that a downturn in major economies following an escalation of protectionist measures could hamper demand for the commodity. Prices remain supported by Saudi Arabia’s comments that the kingdom’s exports will likely fall next month and inventories might be squeezed in the third quarter. Saudi Arabia expects exports to drop by roughly 100,000 barrels per day in August compared with July. The kingdom’s OPEC Governor Adeeb Al-Aama dismissed market concerns over an oil glut as baseless. Back home, the Energy Information Administration reported a larger-than-expected 5.8 million barrels jump in US crude inventories in the week ended July 13. However, gasoline stockpiles declined by 3.2 million barrels for the week and distillate stockpiles dropped by 400,000 barrels. Meanwhile, the number of oil rigs operating in the US fell by five to 858, compared with 764 rigs a year earlier, energy services firm Baker Hughes (BHGE) reported on Friday. This was the biggest decline since late March.
Over the last five days, light, sweet crude oil for August delivery was down 0.38% and closed at $70.46 per barrel. In other energy futures, gasoline declined during the week, down 1.71% and settled at $2.03 per gallon at the close of Friday’s session. Meanwhile, natural gas fell 0.04% lower this week and was down in Friday’s session at $2.73 per 1 million British thermal unit.
The SummerHaven Dynamic Commodity Index Total Return Index (SDCITR) fell 1.72% this week, from a decrease of 1.43% in the previous week.
Gold also ended the Friday session higher, settling at $1,231.10, recovering from the one-year low it hit earlier in the week on the back of a stronger dollar. The stronger greenback was spurred by upbeat comments from US Federal Reserve Chairman Jerome Powell during his two days of testimony to Congress. However, the yellow metal edged higher as the dollar weakened against most major currencies after US President Donald Trump stated his disagreement with the Fed’s decision on interest rate hikes. For the week, gold fell 0.87%. Similarly, copper continued to decline this week, dropping 0.70% despite ending the Friday session higher and settling at $2.76. It also sank to one-year lows on Thursday over concerns that the continued trade war could stunt demand for raw materials. In an interview with CNBC, Trump spoke about imposing tariffs on an additional $500 billion worth of Chinese goods to the US if China decides not to back down on its trade policies. And, the EU, Mexico and Canada have said they will retaliate if Trump imposes tariffs on automobiles. G-20 finance ministers and central bankers will be meeting in Buenos Aires this weekend for the first time since China and the US put tariffs on $34 billion of each other’s goods.
Agriculture commodities ended the week higher, shrugging off the sting of trade war tensions between the US and its major trading partners: sugar had a weekly rise of 1.37% and settled at a price of $0.11 on Friday; and coffee was at $1.10 per pound at Friday’s close, with a weekly increase of 1%. Among grains, corn was up 4.17% in the week and settled at $3.69 per bushel in Friday’s session; wheat rose 3.72% for the week and settled at $5.16 per bushel at the end of Friday’s session; and soybeans rose 3.77% for the week, closing at $8.65 per bushel on Friday. Meanwhile cocoa surged 7.12% higher for the week and closed Friday’s session at $2,322. Prices had increased following disruptions of cocoa farming in the Northwest and Southwest of Cameroon, the fifth-largest cocoa grower. There is an escalating conflict between government forces and rebels demanding independence for English-speaking territories, forcing cocoa farmers to “escape into the bushes,” Bloomberg reported Thursday. In 2017, Cameroon’s cocoa production accounted for 5.2% of global output, according to the International Cocoa Organization.
The SummerHaven Dynamic Agriculture Index Total Return Index (SDAITR) rose 0.73% for the week, compared with a decline of 2.18% in the prior week.
Copyright © 2018 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.