Oil markets tepid ahead of November 30 OPEC meeting- 20 Nov 2017

Gold Prices Dip In Asia As Risk Trade Eases, Copper Down On China Houses Data. 

Gold prices dipped in Asia on Monday as risk trade eased for now and investors awaited more insight on U.S. tax cut plans and related Fed policy. At the weekend, China reported home prices in major Chinese cities remained mostly stable as gains and dips slowed pace in October amid strict government controls. Prices of new residential housing in 13 out of the 15 major cities surveyed, considered the hottest markets, grew less YoY in October, the newspaper said citing data from National Bureau of Statistics (NBS). Meanwhile, new residential housing prices fell in nine out of these 15 cities in October from September, according to the report. An NBS expert cited in the report said that overall housing prices were stable in major cities as the government imposed curbs take effect. Prices of new residential housing fell 0.1% in October from September in China’s first-tier cities while prices for second-hand homes were flat, according to the report.   

Alumina Project of 1 Million Tonnes’ Capacity Starts Construction in Guangxi.  

On Nov.16th, ecological alumina project of 1 million annual capacity started construction in Guangxi. Total investment of the project reaches 3.8 billion yuan with designed annual capacity of 2 million alumina. There into the annual capacity of the first stage plans is 1 million tonnes with 24 months’ construction period. After the project launches, annual value of production is able to reach 2.8 billion yuan. 

SMM Research: View on Copper Price This Week.  

Contract 1801 of SHFE Copper dropped last week, finishing low in three out of five trading days. Up to closure on Nov.17th. Contract 1801 of SHFE Copper finished at 52,590 yuan per tonne, with 1.25% drop from Monday to Friday by 670 yuan per tonne. Last week saw a fierce struggle between bears and bulls. What the tendency of copper price during this week? As per SMM research to domestic insiders, 41% participants are bearish at copper price (drop over 1%), 35% participants are bullish at cooper price (rise over 1%), 13% participants thinks price will be volatile and strong (rise within 1%) and 11% participants think price will be volatile and weak (drop within 1%). 

Oil markets tepid ahead of November 30 OPEC meeting. 

Oil markets were tepid on Monday as traders were reluctant to take on big new positions ahead of an OPEC meeting at the end of the month, when the producer club is expected to decide whether to continue output cuts aimed at propping up prices.Traders said they were avoiding taking on large new positions due to uncertainty in markets. The Organization of the Petroleum Exporting Countries (OPEC), together with a group of nonOPEC producers led by Russia, has been restraining output since the start of this year in a bid to end a global supply overhang and buoy prices. The deal to curb output is due to expire in March 2018, but OPEC will meet on Nov. 30 to discuss the outlook for the policy. OPEC is expected to agree a cut-extension as storage levels remain high despite recent drawdowns, although there are doubts about the willingness of some participants to continue to crimp production.