Oil rises on signs of gradual tightening in global supply

Gold Firmer On Some Safe-Haven Demand, Technical Buying.

Gold prices were ending the U.S. day session with modest gains Tuesday. Silver prices were also firmer and hit a four-week high. Some risk aversion in the marketplace early this week has prompted mild safe-haven demand for gold. Chart-based buying is also evident in gold and silver markets as their near-term technical postures are becoming more bullish. June Comex gold was last up $4.20 an ounce at $1,258.20. May Comex silver was last up $0.118 at $18.33 an ounce. Technically, June gold futures prices closed nearer the session low today. The gold bulls have the overall nearterm technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,268.10. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,225.00. First resistance is seen at last week’s high of $1,264.20 and then at $1,268.10. First support is seen at $1,250.00 and then at this week’s low of $1,246.40.

Southern Copper Workers to Go on Strike.

Southern Copper Corporation’s labor union said its workers at Toquepala and Cuajone copper mine and Ilo smelter will go on strike April 10 local time, according to Bloomberg. The strike plan was informed March 31. The workers aim to gain more share in the company’s profit last year through the strike. But the company attempted to dissuade workers at Toquepala and Cuajone copper mine from doing so this month. The company’s Chief Executive Officer (CEO) Oscar Gonzalez reckons the government will not approve the strike, and will employ contract workers to protect production if these workers insist on the strike. The company agreed on a negotiation with the labor union on profit share requirements April 5-6. Japan-based Mitsui released its production target for zinc and lead in April-September, the first half of 2017 fiscal year April 3. The company said it plans to produce 107900 tonnes of refined zinc, a drop of 4.1% year-on-year, and produce 32,900 tonnes of lead. Battery export declined sharply in February due to 2017 Chinese New Year holiday and overseas clients built stocks 1-2 month before the holiday and mainly consumed battery through inventories on hand after the holiday. So, export reduced sharply in February on a monthly basis. The data declined on a yearly basis due largely to different date of 2016 and 2017 Chinese New Year holidays.

Oil rises on signs of gradual tightening in global supply.

Oil prices climbed on Wednesday on signs of gradual tightening in a market bloated by years of overproduction that has left storage tanks around the world brimming with unsold fuel. Traders said that slowly tightening market conditions were driving price rises, with the Organization of the Petroleum Exporting Countries (OPEC) leading an effort to cut output. With most of OPEC's crude exported on tankers, tracking ship movements can be a good gauge of market conditions. Oil trading data in Thomson Reuters Eikon shows that OPEC shipments to the rest of the world fell to 813.7 million barrels by the end of March from 796.6 million barrels in January. But the tighter markets will only gradually lead to a reduction in bloated inventories as production in some countries, especially the United States, is rising. U.S. crude stocks fell by 1.8 million barrels last week to 533.7 million, still a near all-time record, according to data released late Tuesday from the American Petroleum Institute. U.S. Energy Information Administration will issue its inventory figures on Wednesday.

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