Commodities

Copper retreats from seven-month peak on firm dollar and profit-taking

Reuters London | Updated on February 21, 2019 Published on February 21, 2019

Copper prices slipped from seven-month highs on Thursday as the dollar firmed and investors cashed in gains from a rally in the previous session fuelled by falling inventories.

On Wednesday LME copper broke through technical resistance at $6,400, which triggered profit-taking alongside a stronger dollar, said Saxo Bank commodities analyst Ole Hansen.

The premium for cash zinc over the three-month LME contract rose to $26.50 Aluminium was bid up 0.5 per cent to $1,875 after failing to trade in official rings.

Zinc was bid down 0.9 per cent to $2,674, lead was bid 0.4 per cent higher at $2,048,

Oil near 2019 highs

Meanwhile, oil prices hovered around 2019 highs on Thursday, bolstered by OPEC-led supply cuts and US sanctions on Venezuela and Iran, but were capped by slowing growth in the global economy.

US West Texas Intermediate (WTI) crude oil futures were at $57.17 a barrel at 1320 GMT, 1 cent above their last settlement, and close to a 2019 high of $57.55 of the previous day.

Brent crude futures were down 4 cents at $67.04 after touching a 2019 peak on Wednesday at $67.38.

Oil prices have been driven up this year by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

The main factor keeping oil prices from rising even further is soaring US output, which rose by more than 2 million bpd last year to a record 11.9 million bpd.

The swelling production has resulted in rising US oil inventories.

US crude oil stocks rose by 1.3 million barrels to 448.5 million barrels in the week to February 15, according to a weekly report by the American Petroleum Institute on Wednesday.

Published on February 21, 2019
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