Commodities Finance Supply Challenges: Brent-WTI Spread

Commodities Finance Supply Challenges: Brent-WTI Spread The London Metal Exchange (LME) experienced a surge in zinc inventories, leading to a deeper contango in commodities finance. The influx of zinc into LME warehouses, particularly from Port Klang, resulted in a rise of 13,175 tonnes, bringing the total to 87,500 tonnes, the highest level since June 2022. Concurrently, on-warrant stocks increased by 13,775 tonnes to 81,825 tonnes, the highest since April 2022. These developments, along with the widening cash/3m contango for zinc, indicate an ample supply situation in the short term. The Brent-WTI spread a key indicator of CFD commodities market sentiment, widened to a two-month high of $5 per barrel. This increase came as ICE Brent crude traded slightly positively, while NYMEX WTI crude experienced softer trading. The American Petroleum Institute (API) reported a surprising build in US crude oil inventories, with a 5.2 million barrel increase over the previous week. Expectations had anticipated a withdrawal of approximately 1.2 million barrels, making this inventory growth the largest weekly build in over three months. Additionally, Cushing crude oil stocks rose by 1.78 million barrels. TTF Natural Gas Storage Levels Provide Comfort; Zinc Inflows Impact LME Warehouses TTF natural gas prices briefly surged to around €29/MWh before retreating to approximately €25/MWh following an operational halt at Equinor’s Hammerfest LNG plant in Norway due to a leak. The plant, which experienced an unplanned halt of over three weeks, was restarted over the weekend. Despite this disruption, Europe maintains a sufficient natural gas supply for the summer, with gas storage tanks filled at 68.6% of capacity, surpassing the five-year average of 50.6% at this stage. The market finds reassurance in the adequate supply levels, considering gas to be one of the best commodities to invest in. Chile reported a 5.2% month-on-month drop in copper output in April. Project delays, water restrictions, and lower ore quality affected the matter greatly. Cumulatively, copper production declined by 2.1% year-on-year for the first four months of the year. In parallel, LME data reveals an increase in zinc inventories, with on-warrant stocks rising to 81,825 tonnes, the highest level since April 2022. The influx of zinc into LME warehouses, including the notable additions from Port Klang, reflects changing dynamics in the metal markets and may contribute to the broader supply landscape. Palladium Supply Deficit Revised Down, Nickel Market to Face Surplus MMC Norilsk Nickel has revised its estimates for the palladium supply deficit to 200koz, down from the previously projected 300koz. The revision accounts for the impact of new emissions regulations in China. Furthermore, Norilsk Nickel expects the global nickel market to encounter a supply surplus of 200kt in 2023. That’s a significant increase from the previous estimate of 120kt. Signaling potential shifts in the nickel commodities finance dynamics, the surplus is primarily driven by the ramping up of new nickel pig iron (NPI) and NPI-to-matte capacities in Indonesia. The spread between Robusta and Arabica coffee tightened, trading near the lowest level since January 2021 at USc60/lb. Robusta prices have surged due to concerns over decreasing supplies from major producers such as Vietnam, Indonesia, and India. Meanwhile, projections of a significant Arabica crop from Brazil in the latter half of the year have weighed on Arabica prices. The act led to a narrowing spread between the two types of coffee. Additionally, Ukraine’s grain exports in the 2022/23 season have declined by 3.7% year-on-year, with wheat exports falling by 17%. The country’s total grain exports will most likely decrease by 40% in the current year. The disruptions in the Black Sea grain corridor and restrictions among some European countries are the leading cause. The post Commodities Finance Supply Challenges: Brent-WTI Spread appeared first on FinanceBrokerage. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [This Could Become Your Favorite Stock In A Recession]( Financial experts are split on the recession. Some deny, some say it’s already started, and some are giving new silly names like a “rolling recession” to try to make sense of it. The fact is much of the market believes a big recession is still coming...[Get the FULL Report Here]( By clicking link you are subscribing to The Investor Newsletter Daily Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. [Privacy Policy/Disclosures]( [Commodities Finance Supply Challenges: Brent-WTI Spread]( Commodities Finance Supply Challenges: Brent-WTI Spread The London Metal Exchange (LME) experienced a surge in zinc inventories, leading to a deeper contango in commodities finance. The influx of zinc into LME warehouses, particularly from Port Klang, resulted in a rise of 13,175 tonnes, bringing the total to 87,500 tonnes, the highest level since June 2022. Concurrently, on-warrant stocks increased by 13,775 tonnes to 81,825 tonnes, the highest since April 2022. These developments, along with the widening cash/3m contango for zinc, indicate an ample supply situation in the short term. The Brent-WTI spread a key indicator of CFD commodities market sentiment, widened to a two-month high of $5 per barrel. This increase came as ICE Brent crude traded slightly positively, while NYMEX WTI crude experienced softer trading. The American Petroleum Institute (API) reported a surprising build in US crude oil inventories, with a 5.2 million barrel increase over the previous week. Expectations had anticipated a withdrawal of approximately 1.2 million barrels, making this inventory growth the largest weekly build in over three months. Additionally, Cushing crude oil stocks rose by 1.78 million barrels. TTF Natural Gas Storage Levels Provide Comfort; Zinc Inflows Impact LME Warehouses TTF natural gas prices briefly surged to around €29/MWh before retreating to approximately €25/MWh following an operational halt at Equinor’s Hammerfest LNG plant in Norway due to a leak. The plant, which experienced an unplanned halt of over three weeks, was restarted over the weekend. Despite this disruption, Europe maintains a sufficient natural gas supply for the summer, with gas storage tanks filled at 68.6% of capacity, surpassing the five-year average of 50.6% at this stage. The market finds reassurance in the adequate supply levels, considering gas to be one of the best commodities to invest in. Chile reported a 5.2% month-on-month drop in copper output in April. Project delays, water restrictions, and lower ore quality affected the matter greatly. Cumulatively, copper production declined by 2.1% year-on-year for the first four months of the year. In parallel, LME data reveals an increase in zinc inventories, with on-warrant stocks rising to 81,825 tonnes, the highest level since April 2022. The influx of zinc into LME warehouses, including the notable additions from Port Klang, reflects changing dynamics in the metal markets and may contribute to the broader supply landscape. Palladium Supply Deficit Revised Down, Nickel Market to Face Surplus MMC Norilsk Nickel has revised its estimates for the palladium supply deficit to 200koz, down from the previously projected 300koz. The revision accounts for the impact of new emissions regulations in China. Furthermore, Norilsk Nickel expects the global nickel market to encounter a supply surplus of 200kt in 2023. That’s a significant increase from the previous estimate of 120kt. Signaling potential shifts in the nickel commodities finance dynamics, the surplus is primarily driven by the ramping up of new nickel pig iron (NPI) and NPI-to-matte capacities in Indonesia. The spread between Robusta and Arabica coffee tightened, trading near the lowest level since January 2021 at USc60/lb. Robusta prices have surged due to concerns over decreasing supplies from major producers such as Vietnam, Indonesia, and India. Meanwhile, projections of a significant Arabica crop from Brazil in the latter half of the year have weighed on Arabica prices. The act led to a narrowing spread between the two types of coffee. Additionally, Ukraine’s grain exports in the 2022/23 season have declined by 3.7% year-on-year, with wheat exports falling by 17%. The country’s total grain exports will most likely decrease by 40% in the current year. The disruptions in the Black Sea grain corridor and restrictions among some European countries are the leading cause. The post Commodities Finance Supply Challenges: Brent-WTI Spread appeared first on FinanceBrokerage. [Continue Reading...]( [Commodities Finance Supply Challenges: Brent-WTI Spread]( And, in case you missed it: - [Trading Oil Rally 3% on Progress in US Debt Ceiling Talks]( - [Some Undervalued Stocks to Watch in June]( - [Gold/Silver Ratio: Prices Rise On Halted Rate Hikes]( - [Some Hot-stocks Gaining Momentum After the Bell]( - [Innovative Technology: Artificial Skin with Touch Sensation]( - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored [Build Wealth 10x Faster By Doing This]( As you know, the stock market has been volatile lately, and there's a lot of uncertainty in the air. But we want to assure you that this is not the time to panic. In fact, it's the time to be buying stocks.[Go HERE to Get Their Names And Ticker Symbols]( By clicking the link you are subscribing to the Summa Money Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( - CLICK THE IMAGE BELOW FOR MORE INFORMATION - [i]( Good Investing! T. D. Thompson Founder & CEO [ProfitableInvestingTips.com]() ProfitableInvestingTips.com is an informational website for men and women who want to discover investing and trading products and strategies to educate themselves about the risks and benefits of investing and investing-related products. DISCLAIMER: Use of this Publisher's email, website and content, is subject to the Privacy Policy and Terms of Use published on Publisher's Website. Content marked as "sponsored" may be third party advertisements and are not endorsed or warranted by our staff or company. The content in our emails is for informational or entertainment use, and is not a substitute for professional advice. Always check with a qualified professional regarding investing and trading guidance. Be sure to do your own careful research before taking action based on anything you find in this content. If you no longer wish to receive our emails, click the link below: [Unsubscribe]( Net Wealth Consultants 6614 La Mora Drive Houston, Texas 77083 United States (888) 983-9123