Commodities: Brent futures gain as Saudi cuts output

Gains for metals and various energy futures pushed commodities' prices higher against a backdrop of US dollar weakness after the President-elect disappointed some in the markets hoping for further details on his economic plans in a speech on the previous day.

Metals were supported by stronger than expected lending data for Asia´s largest economy and positive newsflow on specific commodities.

So-called Total Social Financing in China increased by 1,640bn yuan in December, after a rise of 1,740bn in the month before.

The data prompted analysts at Capital Economics to tell clients: "we expect the gradual slowdown in broad credit growth since last summer to continue in the coming months. This will start to weigh on economic activity before long, with economic growth likely to begin slowing again sooner than many are currently anticipating."

Nonetheless, at 1,300bn yuan the consensus forecast for the TSF data had been much weaker.

One trader also referenced reports that Freeport and other miners had stopped copper exports from Indonesia as the reason for the price gains in that metal.

Aluminium futures were also stronger on speculation the US was likely to press ahead with a dumping case against China at the World Trade Organisation.

Gold on the other hand ended the session lower, as an initial attempt to breach the $1,200 per ounce mark was stymied by technical resistance at the yellow metal´s 50-day moving average.

COMEX gold futures on COMEX slipped 0.42% to $1,194.80 an ounce.

In parallel, March 2017 Brent futures jumped 1.65% to $56.01 per barrel on the ICE after Saudi energy minister Khalid al-Falih said his country had cut its output to less than 10.0m barrels a day, which was more than it was required to do under the terms of the agreement reached at OPEC´s last ministerial meeting.

West Texas Intermediate on the other hand was lower as storage tanks at Cushing, Oklahoma continued to near their maximum capacity.

Elsewhere, March 2017 cocoa futures on ICE were up by 4.84% to $2,230 a metric tonne, while wheat futures jumped 1.79% to $4.2625 a bushel on the Chicago Board of Trade.