SHANGHAI, Aug. 10 (SMM) – Diverging trend will intensify on base metal market on Wednesday with focus on US API and EIA reports and JOLTs job openings for June.
Divergence to Expand in Base Metals, SMM Says
US JOLTS job openings may be positive in June, which came in at 5.5 million in May, its lowest for the year. This was in line with the negative reading of nonfarm payrolls in May. But the nonfarm payrolls were upbeat in June and thus JOLTS job openings will also improve, which will support US dollar.
The JBC predicts that the daily crude oil output by OPEC countries may be below 33 million bbl, which is 25,000 bbl below the level anticipated in June.
The growth in US last week’s API oil stocks far topped forecast and inventories in Cushing regions posted large rises. But petrol stocks dropped considerably. As such, the oil futures for September delivery fell initially but bounced back later.