PGMs shown last week, outperforming Gold and Silver as labor strike in South African mines remains a concern.
Anglo American Platinum (OTC PINK:AGPPY) was reported to have fired 12-K workers who refused to return to work Friday as the company attempted to contain the strikes which have spread to many parts of the country.
Strike against Lonmin (OTC PINK:LNMIY)ended as the company and the workers reached into an agreement of pay rise.
Labor actions have affect production. It is expected that Platinum production has declined to around 400-K ozs.
Trade Gold, Silver and Oil Like a Pro Download MetaTrader Free
Crude Oil
The front-month contract for WTI Crude Oil fell for the 3rd week running, accumulating loss of -10.5% following the rally to a 5-month high of 100.42 last month. The decline in prices was mainly driven by concerns over the demand outlook on deteriorating global economic prospect.
Brent Crude Oil slipped -0.33%, showing more resilience than the WTI benchmark as “helped” by delay of Forties cargoes and Nigeria supply disruption.
Crude Oil supply was mixed last week.
On the positive side, Iraq’s Crude Oil exports increased to 2.6-M BPD on average in September, the highest level since Y 1979, compared to 2.57-M BPD a month ago.
Iraq’s autonomous Kurdistan agreed to continue exports as the region and Iraq settled a payment dispute. Crude Oil export from Kurdistan rose to 170-K BDP and is expected to reach 200-K BPD right away.
In Russia, Crude Oil production last month reached a post-Soviet monthly high of 10.41-M BPD due in part to projects such as Sakhalin-2.
On the other side: cargo delays in the North Sea raised concerns over Crude Oil supply. It was reported that 3 more Forties crude cargoes for export in October are delayed and the total number of cargoes deferred reached 10 for the month. Longer-than-expected maintenance at the Buzzard Oil field and output reduction from other fields in the North Sea are the Key reasons for the delays.
Nat Gas
The DOE-EIA reported that natural gas inventory rose +77 bcf to 3 653 bcf in the week ended 28 September. Stocks were +272 bcf higher than the same period last year and +281 bcf above the 5-yr average of 3 372 bcf.
