Commodities show signs of stabilising, outlook remains weak

Commodities show signs of stabilising, outlook remains weak

Commodity prices stabilised on Tuesday after a key index fell to its lowest closing level since 2003, with oil moving back above $50 a barrel.

Brent LCOc1 added 1.2 percent to $50.12 a barrel. U.S. crude CLc1 gained 1.6 percent to $45.89 a barrel.

“A retest of Brent crude’s 2015 low around $45 per barrel looks inevitable given current ample market supply and intensifying bearish market sentiment toward prices,” BMI Research said in a note.

Copper edged up 0.3 per cent on Tuesday after hitting a six-year low of $5,163 a tonne on Monday, and gold traded up 0.6 per cent at $1,091 a troy ounce on Tuesday, slightly above a five and a half year low of $1,077 hit two weeks ago.

Oil has been affected by oversupply, and is trading in a bear market both in London and New York. The outlook remains lacklustre, with volatile markets in China, the world’s second largest economy, and hints of an upcoming rate hike badly affecting commodity prices over recent weeks.