Crude Oil Gains In Asia On Momentum From Drop In U.S. Rig Count - 23 Oct 2017

Commodity Intraday Tips
Gold Prices Down In Asia on Monday As Dollar Gains.  
Gold prices fell in Asia on Monday as the dollar showed strong gains after Japan's Premier Shinzo Abe resoundingly won re-election, signaling continued easy policy. Overnight, gold prices fell on Friday, pressured lower by the stronger U.S. dollar which was boosted after President Donald Trump's plans to overhaul the tax code cleared a critical hurdle. The dollar rose on Friday, making gold more expensive for holders of other currencies, after Senate Republicans approved a budget measure that will allow them to pursue tax cuts without support from the Democratic Party. The index ended the week up 0.69%, its fifth weekly increase in six weeks. Investors expect a fiscal boost to push up inflation, adding pressure on the U.S. Federal Reserve to raise interest rates, known as the "Trumpflation" trade. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. But Republicans have yet to produce a tax reform bill amid divisions over what cuts to make and how to pay for them and analysts have warned that the White House still faces a long battle to push through its agenda.  
IAI: 4.965 Million Tonnes for Global Aluminium output, Dropping both on Yearly and Monthly Basis.  
According to data from International Aluminum Institute, the total output of global aluminium reaches 4.695 million tonnes, dropping 109,000 tonnes compared with August and dropping 157,000 tonnes compared with last year. Excluding China, the global daily output of primary aluminium in September declines to 69,600 tonnes. IAI says China’s daily average output of aluminium has increased to 86,900 tonnes.   

LME Lead Price to Hover at Lows.   
LME lead will fluctuate at highs between USD 2,460-2,490/mt today, and SHFE 1712 lead will hover between RMB 19,000-19,350/mt, with spot lead prices between RMB 19,750-19,850/mt. 

Crude Oil Gains In Asia On Momentum From Drop In U.S. Rig Count.  
Crude prices gained in Asia on Monday as rig count figures out of the U.S. aided sentiment on the supply outlook.Last week, oil prices settled higher in see-saw trade on Friday, as political tensions in the Kurdistan region continued to disrupt crude supplies. The supply disruption in Iraq comes amid ongoing political uncertainty in the region following conflict between Iraqi and Kurdish forces. Iraqi troops marched toward Northern Iraq earlier in week and regained control of two major oilfields from Kurdish forces. Meanwhile, in the U.S., investors mulled over data showing oil drilling activity fell for a third week in a row, extending a two-month drilling decline. Oilfield services firm Baker Hughes said Friday that its weekly count of oil rigs operating in the United States fell by seven to 736, the lowest level since June. The weekly rig count is an important barometer for the drilling industry and serves as a proxy for domestic oil production.

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