Commodities: Iraq willing to bear a portion of OPEC production cuts

Big gains in energy futures outside of crude oil and for copper pushed the complex higher even in the face of US dollar strength.

Front month Brent crude futures slipped 0.2% to $49.02 per barrel on the ICE as West Texas Intermediate dipped 0.15% to end at $47.96 as traders weighed conflicting news regarding the odds that OPEC would be able to agree to a deal on 30 November to prop up prices.

To take note of, talks between OPEC members and countries from outside the cartel had been scheduled for 28 November and all eyes were on whether Russia would join in any output cuts.

On a more positive note, Iraqi Prime Minister Haider Al-Abadi reportedly said his country was willing to bear a portion of any reduction.

As of 1837 GMT the US dollar spot index gained 0.55% to 101.60 while Bloomberg´s commodity index was up by 0.31% to 85.40.

Acting as a backdrop, US Fed funds futures were pricing in a greater than 100% chance of a 14 December 25 basis point rate hike.

In parallel, RBOB gasoline futures were up by 0.67% to $1.4193 per gallon on NYMEX and those for natural gas by a heftier 1.95% to $3.04/MMBtu.

Precious metals on the other hand were left reeling from the strength in the Greenback.

December 2016 COMEX-traded gold futures were down by 1.71% to $1,190.50/oz.. and silver lost 1.34% to $16.51/oz..

Copper futures on the other hand were again higher, adding 2.80% to $2.6275 a pound.

Overnight, spot iron ore prices at Tianjin advanced from $69.0 a tonne to $71.5 a tonne, alongside a gain in steel rebar from $446.6 a tonne to $452.2.

Agricultural commodities were under a tad of selling pressure, with March 2017 wheat on CBoT losing 0.94% to $4.2325 a bushel and ICE Cooton #2 retreating by 0.78% to $71.68 a pound.