Commodities: Copper and crude oil futures pace gains

Gains in the energy space pushed the Bloomberg Commodity Index higher by 0.72% to 161.20 on Friday, with some analysts continuing to hold divergent views on the outlook for prices.

Crude oil futures were supported by a downward revision from the International Energy Agency (IEA) to its forecast for US oil production this year.

The rich-world's oil watchdog estimated that oil production outside the OPEC cartel will fall by 750,000 barrels a day this year - 150,000 barrels a day more than it estimated last month - easing concerns about the supply glut. Iranian production was also coming onstream more slowly than Tehran had claimed, the IEA said.

West Texas Intermediate crude oil futures jumped 1.82% to $38.49 per barrel in NYMEX trading on the back of that news.

"There are clear signs that market forces ... are working their magic and higher-cost producers are cutting output," the IEA said in its latest monthly report.

" A final wave of supply growth is expected to push [commodity markets] further into surplus. That aside, the point where markets start tightening is now close enough to see for investors,” analysts at ANZ bank said in a research note to clients.

However, on Friday Goldman Sachs reportedly reiterated its downbeat view on oil, cautioning that prices might be set to fall sharply over the coming weeks as record stock builds offset declines in oil output.

Goldman reportedly also lowered its forecast for the average price of Brent oil this year from $45 per barrel to $39 per barrel.

Bloomberg's commodity index - a gauge that tracks the prices of 22 raw materials - had rallied by 9% from its 20 January lows, while the data provider's spot Dollar index finished lower for a second consecutive week, although it edged higher by 0.11% in Friday to 96.17.

Oil futures had rebounded by 45% from the 12-year low plumbed in February.

Better risk-appetite across markets saw gold futures on COMEX for delivery in April slide by 1.7% to $1,251 per ounce. Silver futures fared better, retreating 0.61% to $15.51 per ounce while platinum surrendered 1.79% to trade at $961,75.

A 12th consecutive weekly drop in the US Baker Hughes US rig count to 386 may also have put a bid in the market.

Copper futures ended the day up by 0.95% to $224.10 per pound on COMEX. On Thursday, the ICSG released its 2016/2017 forecasts calling for a minor 56kt copper deficit in 2016 and a 20kt surplus in 2017, "essentially balanced markets" analysts at Macquarie said in a research note.

The Australian broker also took note of the major new policy stimulus package unveiled by the European Central Bank on 10 March and reports of new initiatives to help clear non-performing loans from Chinese banks' balance sheets.

In the agricultural space, corn futures rose 0.62% to $365.0 per bushel on the Chicago Board of Trade, cotton 0.56% to $57.15 per pound and live cattle another 1.08% to $128.55 per pound.