Further fall in oil prices overshadowed gains in other commodities – ANZ

Research Team at ANZ, notes that the WTI crude oil dipped below USD40/bbl as another rise in the rig count in the US weakened sentiment in the market.

Key Quotes

“Baker Hughes estimates 374 rigs were operating last week, up 3 from the previous week. News that Libya is about to resume oil shipments also weighed on the market.

Industrial metals closed mostly higher. Investors seemed to take a positive view of a series of PMI reports in China that showed conflicting states of the manufacturing sector. Once again nickel and zinc led the gains as inventories continue to fall. Iron ore was also stronger as further constraints on steel mills were implemented. This helped push steel prices higher, supporting raw material markets.

Despite a stronger USD, gold held onto its gains from last week as investors look ahead to this week’s jobs data in the US.”