The strong US dollar weighed on dollar-denominated commodity markets last week, and crude oil and gold were the most affected by selling pressure. Natural gas futures plummeted when investors lost hope of a price increase in the winter. Crude oil was directly influenced by renewed concerns about US-China trade relations. Gold was pressured by lower foreign demand. Natural gas fell in forecasts of lower demand.
US Brent crude oil futures in the Intermediate and International West Texas closed down last week, but the US market absorbed a larger loss.
For the week, WTI crude for March was settled at $ 52.72, $ 2.54 or -4.60% and April Brent crude closed at $ 62.10, $ 0.65 or -1.05%.
While OPEC-led production cuts continued to sustain prices due to their ability to reduce excess global supply, the shift in traders' approach to demand problems clearly outweighed their influence.
Crude oil prices increased at the start of operations last week, reaching their highest ratings since November 21. The support prices at the beginning of the week were US sanctions against Venezuela that helped maintain investors' focus on the world's tightest supplies. Prices were also supported by the news that OPEC's oil supply fell in the most in January in two years, according to a Reuters poll.
Prices began to fall and remained weaker during the week after the European Commission reduced its outlook for the economy of the Euro Zone and renewed concerns about a trade agreement between the United States and China.
At the end of the week, Brent crude oil received a boost from reports that the United States would not extend exemptions to countries authorized to buy Iranian crude oil.
The weakness in gold prices was fueled by two factors last week. Earlier in the week, gold was pressured by overflow sales in response to the robust US nonfarm payrolls report. UU From the previous Friday and the data of the ISM Manufacturing PMI. These reports raised questions about the evaluation of the Fed's economy. Yields on Treasuries increased in the news, as traders valued the possibility of at least a rate hike in 2019. This strengthened the US dollar by time that reduced the demand for gold denominated in dollars.
For the week, April gold Comex was settled at $ 1318.50, $ 3.60 or -0.27%.
Gold was further pressured as the dollar rose further in the purchase of a safe haven linked to the problems with the US-China trade negotiations. Buyers of Safe Haven returned to gold at the end of the week, which helped to settle at the low of the week as investors reduced the demand for risky badets.
Natural gas prices were pressed all week by the return of warmer temperatures, which reduced the demand for heating. The sale was extended at the end of the week following the publication of a government bearish storage report. Traders also responded to a change in weather forecasts that now say that the return of a weather system in mid-February will not bring the extremely low temperatures that were previously expected.
For the week, March natural gas was settled at $ 2,583, down from $ 0.151 or -5.52%.
<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This Article was originally published in FX Empire "data-reactid =" 37 "> This article was originally published in FX Empire
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