Commodities: All Is Not Well Within OPEC+

Summary

• ICE Brent settled almost 2% lower on the day amid concerns about aggressive supply hikes from OPEC+. This comes after Kazakhstan said that it’s unable to lower oil output and plans to prioritise domestic interests over OPEC+ obligations.
• Further disagreement between OPEC+ members is a clear downside risk, as it could lead to a price war.
• Copper and other industrial metals continued to rise yesterday amid hopes of a de-escalation in trade tensions between the US and China.
• Gold fell from a record high above $3,500/oz reached earlier in the week on Trump’s softer stance on China and the Fed. Prices are still up by more than 25% so far this year, supported by market volatility and ever-changing US policies.

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By Warren Patterson, Ewa Manthey

Energy - OPEC+ struggles

While a risk-on move lifted most risk assets yesterday, oil was left behind thanks to OPEC+ discord. ICE Brent settled almost 2% lower on the day amid concerns about aggressive supply hikes from