Daily FNArena News - Commodities

The weaker global economic outlook is spurring further cuts to oil price forecasts.

Production problems, increasing demand and the prospect of a new uranium fund sees the uranium spot price rise for the second straight week.

Reduced demand and buyers reneging on contracts have sent prices lower among the bulk commodities and brokers have adjusted their expectations accordingly.

According to Barclays Capital the oil price has overshot to the downside as it adjusts to changing market dynamics and economic conditions but longer-term supply side issues support higher prices.

As conditions continue to weaken brokers are continuing to reduce their commodity price forecasts.

The price of a pound of yellow cake continues to drop.

Assets under management in the commodities sector may have fallen, but it’s from lower prices not lower investor interest.

While aluminium prices will again be demand driven once the market’s current volatility ends, Standard Chartered suggests here the outlook is not good as Chinese demand continues to fall.

Short term weakness will prevail, but Goldman Sachs sees longer term opportunities.

Weaker economic conditions are creating a cyclical downturn in the oil market and analysts are lowering their price expectations accordingly.