Daily FNArena News - Commodities

Power supply problems at South Africa’s Eskom may impact on available supply of uranium this year, but it hasn’t stopped the weekly spot price from falling below US$75/lb.

Oil again pushed through US$100 per barrel overnight but ANZ Bank suggests the market has it wrong and prices are headed to US$80 per barrel by the end of 2008.

If the IMF can make good on promised cost reductions, the US will allow it to sell some 13 million ounces of gold.

Spot uranium would have fallen below US$75/lb if it wasn’t for Uranium One’s production shortfall in Africa.

Slowing global growth usually means weaker commodity prices but Barclays Capital suggests the current supply side issues across the commodity spectrum should support prices.

OPEC meets early in March to discuss the outlook for the oil market and Commonwealth Bank suggests the meeting is likely to find no change in output levels is required.

Supply side issues have pushed up the aluminium price but JP Morgan suggests such stronger prices will not be sustainable, the broker retaining its negative view on Alumina Ltd as a result.

Industry consultant TradeTech has left its weekly spot price indicator unchanged for the second week in a row.

While a number of LNG projects have now been proposed in Queensland Credit Suisse doesn’t think the market will tighten enough to lift prices to levels allowing all the proposals to proceed.

Barclays Capital has been bullish on aluminium for some time and with indications a potentially significant tightening in the market is possible the group reaffirms its view.