Daily FNArena News - Commodities

A move to better fuel economy in cars and trucks in the US may reduce gasoline demand but Barclays Capital suggests any change won’t impact on the global oil market balance.

According to GaveKal the recent run in the oil price is not supported by fundamentals but Barclays Capital has a different view.

Poor harvests in India and elsewhere should offset higher Brazilian output and so keep upward pressure on sugar prices.

Aluminium prices have risen from recent lows as sentiment has improved but according to Barclays Capital there are reasons to remain bearish on the metal in coming months.

In theory coal prices moving lower places a floor under natural gas prices but according to Barclays Capital the reality is somewhat different.

Longer-term higher Chinese demand suggests upward pressure will continue for commodity prices, even if prices ease in coming months.

Not wishing to be left behind, spot uranium had a solid jump last week.

Increasing Chinese interest in purchasing uranium is without doubt one of the stand out developments for the industry this year.

The Chinese economy apears to be recovering but while this is a positive for commodity prices Westpac suggests a sustained recovery won’t occue before the rest of the global economy also recovers.

Spot U3O8 prices rose for the second week in a row.