Oil price bounce drives global commodity open interest value rebound – JPM

JPM Commodities Research said the estimated value of open contracts in global commodity markets rose 1% during the week to $15 billion, with gains driven entirely by the energy sector, while it expects LME copper prices to trade at around $9,800 per metric ton. In the future. a fourth.

Net contract-based flows have returned to global commodity markets after back-to-back weekly flows recently, albeit totaling $833 million, JPMorgan analysts said in a June 17 note.

The combined estimated value of an investor's net position across commodity markets declined for a consecutive week, with declines in metals, agriculture and environmental markets partially offset by energy market gains as of June 11.

The JPMorgan report said that net investor length in energy markets rebounded from recent lows, increasing by $3.3 billion on a weekly basis to $3.6 billion.

The estimated value of open interest in precious metals markets fell slightly to approximately $179 billion, falling for a fourth week in the week ending June 14. The net length of funds under management in COMEX gold futures rose by 666 contracts to 152.9K contracts in the week ending June 11. June.

Meanwhile, the estimated value of open interest across base metals markets fell for the fourth week to approximately $198.9 billion. However, the brokerage sees “emerging signs that Chinese demand is finally responding to lower prices.” China is expected to begin fully absorbing its visible copper inventories in the coming weeks and months, supporting copper prices at a higher level of around $9,800 per metric ton in the coming quarter.

In the energy space, meanwhile, oil indices fell as investors assessed the demand situation and continued uncertainty around the US central bank's interest rate schedule.

Crude oil futures jumped to their best levels since late April on Monday, adding to last week's gains that followed reports from OPEC+, the International Energy Agency and the US Energy Information Administration that… Confidence boosted The demand for oil will improve in the second half of this year.

the financial times, Meanwhile, it was reported that the Biden administration is prepared to release more oil from the US Strategic Petroleum Reserve to stem any jump in gasoline prices at the pump this summer.

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