A much quieter week for commodities ahead of the end of the month, quarter, half and financial years for major miners like BHP, Rio Tinto, Whitehaven, Oz Minerals, North Star and Fortescue Metals.
But it will be OPEC and its allies which move back into the market spotlight this week.
There’s an OPEC+ meeting scheduled for Thursday to discuss another relaxation of its production cap.
The group of major oil producing nations has eased up on the record supply cut made last year by returning 2.1 million barrels of oil per day through July.
But with demand returning and prices at two-year highs, energy analysts wonder if the OPEC + (mainly Russia) group will agree to release more oil starting in August.
Either way their decision, it will have a big influence on inflation over the rest of 2021.
Last week saw oil prices rise for a fifth week, reaching their highest since October 2018, on expectations demand growth will outstrip supply and OPEC+ will be cautious in returning more crude to the market from August.
Brent futures rose 62 cents, or 0.8%, to settle at $US76.18 a barrel, while US West Texas Intermediate (WTI) crude rose 75 cents, or 1.0%, to $US74.05.
For the week Brent was up 2.8% and WTI, 3.4%.
US oil rig numbers were unchanged at 470 for gas and oil – oil dipped by one unit to 372.
US oil stocks fell by 7.6 million barrels to 459 million barrels and production was around 11.1 million barrels a day, down around 100,000 bbd from the previous week.
Comex gold futures gained 0.1% to $US,777.80 an ounce for a weekly gain of 0.5%, the first in four weeks.
Comex copper rose 4.1% last week, ending Friday at $US4.29 a pound but down 0.5% for the session.
On Friday 62% Fe iron ore fines imported into Northern China ended at $US216.45 a tonne on Friday, up 1.4% or %US2.99 from Thursday’s closing. They fell $US2.45 over the week.
58% Fe fines rose $US3.30 a tonne on Friday to $US187.16. They were up $US1.14 a tonne for the week.
And the price of 65% Fe fines from Brazil were up $US1.40 a tonne at %US250.70. That was $US1.30 a tonne from the week before.
Traders said the lower grades or iron ore – especially 58% Fe fines were in demand because of a weakening in steel mill profit margins last week.
If the lower margins persist, the mills will switch back to higher Fe grades to maximise the crude steel yield from each tonne of ore.
