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Energy Commodities Shot Up Again

Highlights:

ENERGY:
Brent oil advanced by 1.8% or $1.45, to $83.84 a barrel. Meanwhile, WTI climbed by 2.2% or $1.71, to $81.06.
The natural gas price expanded by 3.74% to $5.77 per mmBtu in New York.
METALS:
Gold futures for December delivery dropped by $2.40 at $1,755.00. Meanwhile, silver traded with a loss of $0.125 at $22.58 an ounce on Comex.
Copper
AGRICULTURAL:
The most active soybean contract on the CBOT increased by 0.3% to $12.46-1/4 a bushel. Meanwhile, corn was trading with a gain of 0.2% to $5.31-3/4 a bushel.

Oil started the week with gains

Last week, oil futures registered many movements in both directions, but the important thing is that in the end, they ended up higher.

Brent oil advanced by 1.8% or $1.45, to $83.84 a barrel. Meanwhile, WTI climbed by 2.2% or $1.71, to $81.06.

Crude prices rose earlier in the week when OPEC and its allies decided to increase production by 400,000 barrels a day after their meeting. It is just what the group had already agreed to in July.

Prices fell in the middle of the week following the release of bearish inventory data from the American Petroleum Institute and the US Energy Information Administration.

The reserves of crude and gasoline in the United States increased the past week due to the increase in production thanks to the reactivation of the platforms.

Gas supply is improving in the US

The natural gas price expanded by 3.74% to $5.77 per mmBtu in New York.

US natural gas futures ended lower last week after reaching their highest level in recent years on Thursday.

Bespoke analysts expect the low demand pattern to continue until the end of the month or at least until the beginning of November.

Pleasant weather conditions, already for several weeks, have helped improve the situation of accumulated reserves that was so worrying in the 48 continental States of the US.

Most of the recent market strength has been tied to the rise in global markets. Analysts think this could change this week as traders are likely to follow US weather patterns more closely.

There is still a lot of upside risk due to the global trade. However, the improvement of the storage outlook in the US could slow the increases in the prices during the week.

Gold and silver are slightly down

Investors seem to be unclear about the next steps taken by the monetary authorities after the publication of the employment report. Consequently, the price of gold continues its horizontal behavior without defining a clear trend.

Recent rising bond yields and the US dollar advance are bearish for the safe-haven metals.

Gold futures for the December delivery dropped by $2.40 at $1,755.00. Meanwhile, silver traded with a loss of $0.125 at $22.58 an ounce on Comex.

September has been the worst month of the year for the labor market so far. Nonfarm payrolls grew by 194,000 employees, well below the average analyst estimate.

The weak employment report should make it difficult for the Fed members to begin normalizing their monetary policy. Under this scenario, the price of gold should react positively.

Soybean and corn futures rise

Corn and soybeans futures increased on Monday. The most active soybean contract on the CBOT increased by 0.3% to $12.46-1/4 a bushel. Meanwhile, corn was trading with a gain of 0.2% to $5.31-3/4 a bushel.

Tobin Gorey, director of Agricultural Strategy at Commonwealth, stated that vegetable oil prices support soybeans.

Even though both of the agricultural products experienced profit-taking on Friday, the situation remains tight.

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