U.S. oil prices rise supported by OPEC output cut compliance.- 9 Mar 2017

Commodity Intraday Tips

A Whole New World of Gold Demand Is Opening Up... Muslims.
Most analysis of gold and silver markets tends to be U.S.-centric. However, the next secular trend in precious metals markets may have less to do with U.S. debt, U.S. politics, the U.S. central bank, and the U.S. dollar and more to do with a gigantic new source of demand.It’s not the 1970s anymore. Back then, big moves in the metals markets were centered on United States. The great gold and silver mania of the late 1970s was driven by inflation fears and a rush of speculative demand. Although coin dealers struggled to keep up, there was no actual global shortage of physical metal, and spot prices crashed after manic buying peaked in January 1980.Today, it’s a whole new world when it comes to sources of gold demand. Gold prices are still quoted in dollars, but international buying and selling now figures much more prominently in determining those prices.

China Zinc Output to Rise in March.
China’s zinc production fell in February with an increasing number of producers conducting maintenance and slashing output, SMM understands. Some smelters suffered from raw materials shortages, with inventories at some of them sufficient to less than 20 days of production. Meanwhile, some undertook maintenance due to the Chinese New Year holiday and low-demand season. Zinc production will grow in March, SMM said. 7 smelters will conduct maintenance in March, which will affect output by 21,000 tonnes. But some that undertook maintenance in February will restart.China’s copper cathode output was 634,500 tonnes in February, up 0.55% on the month and 2.67% year-on-year, SMM reported. Output totaled 1.27 million tonnes during January-February, a rise of 3.48% year-on-year. Real output in February is higher than the 627,000 tonnes expected because Yunnan Copper’s output returned to normal level after maintenance, SMM said. Copper production is expected to fall in March, SMM predicts. Fangyuan Nonferrous Metals, Yuguang Gold & Lead and Jinguan Copper Corporation have maintenance plans. Zhangjiagang United Copper will replace electrolytic cell. This will affect 51,500 tonnes of output at these smelters during February-April.

U.S. oil prices rise supported by OPEC output cut compliance.
U.S. oil prices rose in Asian trade on Thursday as high compliance with OPEC's production cuts lent support, although U.S. record crude inventories weigh on market sentiment. Crude inventories in the United States, the world's top oil consumer, surged last week by 8.2 million barrels, handsomely beating the forecast of a 2 million barrel build. EIA/S. "When combined with the huge speculative long positions in the market, it's not surprising that prices sold off so strongly," ANZ said in a note."However, there is increasing talk of extending the OPEC production cut agreement."
Kuwait Oil Minister Essam Al-Marzouq said on Wednesday that OPEC's compliance with an oil output cut exceeded a target, standing at 140 percent in February, while non-OPEC Members compliance was 50-60 percent  is set to host a ministerial meeting on March 26, attended by both OPEC and non-OPEC members to review compliance with crude oil production cuts. OPEC and other major oil producers including Russia reached a landmark agreement last year to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017.

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