The delivery of oil in Kazakhstan is experiencing some delays in the energy sector.
The decline in treasury yields and a weaker USD after certain Fed officials made less aggressive remarks helped boost commodity complexes. I'm sorry, but I'm not sure what you mean by "ICE." Could you please provide more Brent oil prices climbed back up to levels comfortably above US$81 per barrel, ending the day with a modest increase of over 2.1%. Despite the ongoing disagreement among OPEC+ members regarding output targets for 2024, the oil market has remained robust. It's possible that tomorrow's meeting might get postponed if the group can't come to a preliminary agreement. This could potentially cause a drop in oil prices. The direction of the oil market in 2024 will heavily rely on the decisions made by OPEC and its allies.
The oil loadings were also affected by storms in the Black Sea region, which provided additional support. It looks like the weather is going to be pretty bad for most of this week. Due to the current loadings ban, production is expected to decrease. The energy ministry of Kazakhstan has already stated that there will be a significant 56% reduction in output from the country's largest oil fields, namely Tengiz, Kashagan, and Karachaganak.
According to the latest report from the American Petroleum Institute, there has been little change in crude oil stockpiles. Last week, there was a decrease of 817 thousand barrels in US stocks and a decrease of 465 thousand barrels at Cushing. The market was expecting a slight decrease in crude oil inventory. The amount of gasoline in storage went down by 898 million barrels, but there was an increase of 2.8 million barrels in distillate inventories. If the figures released by the EIA later today show a similar increase in distillate stocks, it would be the first time we've seen an increase since September.
The copper miners in Peru have initiated strikes against MMG's manganese operations.
Workers at the Las Bambas copper mine in Peru, owned by MMG, went on an indefinite strike on Tuesday due to the delayed payment of their bonuses. The mine has a maximum production capacity of 400,000 tonnes per annum. We currently do not have information on how the strike will impact the copper production at the mine. With the increase in smelting capacity worldwide, the copper concentrate market is expected to become more competitive. Additionally, mining operations are encountering growing political concerns on a global level. The First Quantum mine in Panama, which is owned by a Canadian company, has recently been compelled to suspend its operations due to the significant protests it triggered in the country. Yesterday, a court ruled that the contract of the miner to operate the mine was deemed illegal.
Yesterday, the copper stockpiles that are available for trading on the London Metal Exchange reached a new low of 154,325 metric tons. This is a decrease of 6,900 metric tons compared to their previous peak on September 19th. The downturn was heavily influenced by the warehouses in New Orleans. Yesterday, the inventories for exchange experienced a decline, reaching a low of 176,400 metric tons. This is the lowest level observed since November 2nd. The inventories had dropped by 1,400 metric tons the day prior to this.
Cocoa takes advantage of supply issues in the agricultural sector.
The prices of cocoa in the US reached a new peak on Thursday, maintaining their ongoing upward trend that started back in 1977. Crop diseases in West Africa are on the rise due to the wet weather. Additionally, worries about a strong El Nino event suggest that there may be a third consecutive supply shortage for the 2023/24 season. Recent reports have raised concerns about potential caterpillar attacks during the upcoming harmattan season in the Ivory Coast. This season typically spans from late November to March. In the northwest region, there is a projected decrease in total output because the plantings are getting older. Moreover, Cameroon is currently facing the challenge of combating black pods and other diseases caused by persistent rainfall. Similarly, cocoa producers in Ghana are struggling to obtain the necessary fertilizers to effectively manage crop diseases.