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Crude oil prices decrease amid hopes of rise in demand as nations lift COVID-19 curbs

Global leaders are hopeful about the world’s much-awaited recovery from COVID-19 as industries proceed to resume activities. With lockdowns being lifted in several countries, major economies and companies look forward to coming back on track.

Gold

Spot Gold prices ended higher by 0.56% on Monday closing at $1694.6 per ounce as the U.S. federal reserve weighs on the U.S. Dollar making gold cheaper for other currency holders.

On Friday, gold prices declined by 2% on the growing expectation of relaxed monetary policies by the U.S. Federal Reserve.

Corona-related worries decreased slightly with the latest job report posted by the U.S., reducing the chances of negative interest on the yellow metal.

Last week, the U.S. reported a significant reduction in the number of unemployment claims in May 2020, pushing investors towards riskier asset classes and dampening the appeal for gold.

Silver

On Monday, Spot Silver prices increase over 2.8%, closing at $17.9 per ounce. Prices on the MCX soared by 1.76% and closed at Rs.48185 per kg.

Crude Oil

On Monday, WTI crude prices took a dip of 3.4%, closing at $38.2 per barrel as a kingdom. Gulf allies Kuwait and the United Arab Emirates decided not to trim their output by 1.18 million BPD in July’20.

Last week, oil prices surged as OPEC and Russia stated that they would extend output cuts till the end of July 2020. The downfall was limited as OPEC and its allies extended the 9.7 million production cuts by one month.

Libya’s National Oil Corporation resolved to operate at full capacity within two weeks after resuming production activities on Monday.

Base Metals

Base Metal prices on the London Metal Exchange displayed mixed results due to global stimulus plans and hopes of recovery of the demand from China buoyed the prices.

While industrial metal prices took a hit after manufacturing activities slowed down in China, the service and construction sector has picked up recently, indicating an uneven recovery and weighing on base metal prices.

However, the uncertain recovery in China and curbed demand from other nations continue to affect the demand for industrial metals.

Copper

On Monday, London Metal Exchange Copper prices soared by 0.17% closing $5699.5 per tonne with rising expectations of China’s economic recovery and coupled with reducing inventory levels on the Shanghai Futures Exchange (SHFE).

After months of recession-like conditions, a slight relief in the form of lifting lockdowns has stoked the expectations that the economies will bounce back soon.

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