Commodities: WTI futures climb after inventory data, Iran threat on nuclear deal
Energy and agriculture futures racked-up big gains, with the former boosted by a set of 'bullish' figures on weekly US oil inventories and a threat by Iran that it might leave the nuclear deal that it signed up to in 2015.
According to the US Department of Energy, during the week ending on 24 August crude stockpiles in the States shrank by 2.6m barrels to reach 405.8m (consensus: -0.7m), as exports bounced back and domestic output dipped, possibly due to logistical constraints, according to Capital Economics.
In the background meanwhile, Iranian Supreme leader, Ayatollah Ali Khamenei, told his Cabinet that "The JCPOA (nuclear deal) is not the objective, it is only a means," he said in a meeting with the cabinet," AFP reported citing Khomeini's website.
However, for now at least the Iranian leader said talks with Europe should continue, although he was skeptical "of their promises".
Khomeinin's remarks came amid data from Reuters Eikon showing that his country's exports of crude oil and condensate were set to fall below 70.0m barrels in August for the first time since April 2017, as sanctions begin to bite.
On the back of the above, Iraqi state oil producer SOMO predicted a shortage and said OPEC will discuss offsetting actions, Reuters reported.
As of 1951 BST, the Bloomberg commodity index was up by 0.47% to 83.75, alongside a 0.12% dip for the US dollar spot index to 9.6080.
West Texas Intermediate for prompt month delivery meanwhile was lower by 1.46% to $69.53 a barrel on the NYMEX.
Over on the CBoT, the December wheat contract was also very strong, adding 3.54% to change hands at $5.4175 a bushel.
The main LME base metals contracts on the other hand were 'mixed', with that for three-month copper slipping from $6,130 per metric tonne at the opening bell to $6,086 by the close of trading.
"LME metals came under pressure as USD/CNY strengthened under additional trade tensions and strong economic data from the US, to 6.82 at the time of writing," explained traders at Sucden Financial.
"A Trump focus on NAFTA has cut hopes of any quick resolution to the trade dispute. EM currencies continue to suffer following a downgrade of 20 of Turkey’s financial institutions by ratings agency Moody’s, with lira and rouble spot down 2.57% and 0.34% at the time of writing."
Sucden also pointed out how LME nickel was fast approaching its 200-day moving average.
December gold on COMEX was weaker as well, slipping 0.21% to $1,211.80/oz..