Oil closed strongly while other commodities struggled with stronger USD - ANZ

Research Team at ANZ, notes that the oil closed strongly while most other commodities struggled with the stronger USD.

Key Quotes

“Oil prices rallied after the EIA weekly report showed gasoline inventories declined the most at this time of the year for at least five years. Stocks dropped 3.26 million barrels to 238.2 million barrels. The market was also buoyed by a fall in US oil production, down 55kb/d to 8.46mb/d last week.

The strong USD, driven by a positive private sector jobs report by ADP, created a headwind too strong for most other commodities. Gold eased back from a ten day rally as investors took profits. Industrial metals also struggled, with copper trading sideways. Weaker steel prices in China weighed on iron ore, with physical traders sitting on the sidelines.”