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Americas:Metals-Energy Update: Natural gas zooms, gold steady

https://www.chemnet.com   Mar 23,2011 commodityonline
Natural gas has been one major beneficiary of the Japan nuclear crisis and has climbed more than seven percent in New York last week while crude oil weakened a bit as tensions in Libya eased thereby giving expectations that supply from the region will be restored soon. Base metals prices have risen reflecting global trends and strong domestic demand with in India.

Precious Metals
Gold prices marginally weakened a bit on week as safe haven demand continued to be intact Libyan tensions and Japan's quake impact began to easen a bit. The falling value of yen and dollar helped give firm support to the yellow metal.

The Bank of Japan put more money into the financial system and caused the yen to fall most in two years. Dollar weakened against a basket of six currencies thus providing firm support for precious metals.

Comex Gold April fell 0.4% to $1,416 on Friday, still unable to sustain the $1,445.70 record levels reached on March 7. Silver futures comparatively showed higher growth of 2.4% in prices at $35.058 an ounce. Palladium June fell 4.5% on week to $731.20 an ounce at Nymex while Platinum April fell 3.3% on week to $$1,723.40 an ounce.

MCX April Gold fell to Rs 0.67% from Rs 20990 to 20848 while MCX May Silver fell 1.61% from Rs 53982 to 53111

Crude Oil
Crude oil prices showed weakening trends last week and fell as Libya announced that it will cease military operations against rebels and will start resolving disputes that curtailed crude oil shipments.

Crude oil for April Delivery at Nymex remained stable towards weekend at $101.07 a barrel as against $103.66 before the Libyan announcement. Brent crude oil for May settlement fell ended the week at $113.93 a barrel on the London- based ICE Futures Europe exchange. The crude oil prices in the past few weeks were impacted by Libya, Bahrain and Japan quake.
Japanese oil demand will rise as nuclear plants are shuttered and the country rebuilds, according to an analysis by Deutsche Bank.

MCX April Crude contract rose from Rs 4612 to Rs 4633 after hitting a high of 4740.

Base Metals
Base metals prices have firmed up at London Metal Exchange. The three-month copper ended lower on Friday but for the week gained 3.5% at $9,510. The most actively traded May contract edged 0.1%, or half a cent, lower at $4.3390 a pound on the Comex division of the New York Mercantile Exchange.

Trading sentiments in copper futures turned better as the metal strengthened in overseas markets and pick up in demand at the domestic spot markets

Copper stockpiles monitored by the Shanghai Futures Exchange gained after the bourse started to include two bonded warehouses as delivery points this week, Inventories rose 19,111 metric tons to 177,365 tons, based on a survey of 10 warehouses in Shanghai. The two bonded warehouses had 30,104 tons of copper towards the end of last week. Aluminum stockpiles dropped 10,138 tons to an 11-month low of 411,589 tons, based on a survey of 18 warehouses in Shanghai, Guangdong, Jiangsu and Zhejiang provinces.

Zinc inventories continued to expand, adding 7,863 tons to a record of 354,536 tons, based on a survey of 15 warehouses in Shanghai, Guangdong and Zhejiang, the exchange said.

MCX April copper prices rose from Rs 423.05 to Rs 435.35 after hitting a high of 437.90.

Natural Gas
Natural gas prices have soared on New York Mercantile Exchange with April delivery contract rising to its highest level since February 4 at $4.168/mmbtu. On Thursday, there weekly inventories in US inventories that pushed up prices which provided continued buying support at Nymex. Nymex bench market contract rose 7.1% on week after trading in range between $3.84 and 4 in the past few weeks.

The number of rigs drilling for gas in the U.S. this week fell the lowest level since January 2010. There were 875 rigs drilling for natural gas in the U.S., the oil-field services provider said, down seven from the previous week and the third consecutive week of declines.

Analysts have kept a close watch on the rig count for signs that gas producers are pulling back to limit supply growth. Many analysts expect rising production from North American shale rock formations to overwhelm demand in the first half of the year.
At India's MCX, April Natural Gas futures rose from Rs 181.90 to Rs 192.80 after hitting a high of Rs 194.80, reflecting the global developments.

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