Commodities: Oil Supported By Geopolitical Risks Despite Supply Gains

Home Market Outlook Commodities Summary While there are growing signs of a recovery in oil flows from the Persian Gulf, the market remains nervous about potential supply disruptions from the region. This is keeping prices well-supported for now. The European gas market remains vulnerable despite signs of a more recent pick-up in LNG flows from the Persian Gulf.

EU gas storage is just shy of 73% full. This is down from 83% at the same stage last year, and below the 5-year average of 88%. Copper edged higher as the market continues to draw support from tight physical conditions.

Concerns over potential US copper tariffs have encouraged metal to flow into the US market, leaving inventories elsewhere relatively constrained. Sugar prices rose for a third consecutive session, with No. 11 raw sugar climbing more than 4% and breaking above USc20/lb. The rally is being driven by mounting concerns over tightening global supplies as adverse weather conditions threaten production across key producing regions. matejmo/iStock via Getty Images By Warren Patterson , Head of Commodities Strategy, and Ewa Manthey , Commodities Strategist Energy - Persian Gulf supply increases While there are growing signs of a recovery in oil flows from the Persian Gulf, the market remains 5.67K Followers

Source: Seeking Alpha