Oil dips on high OPEC supplies, defying falling U.S. crude stocks

Gold dips in Asia as dollar fortunes eyed ahead of US jobs data.

Gold prices dipped in Asia on Thursday with the dollar in focus ahead of US nonfarm payrolls at the end of the week. Overnight, gold prices fell but remained near seven-week highs on Wednesday, after ADP data missed expectations, pressuring the dollar to sink to its lowest level for the year, making gold attractive to buyers holding other currencies. Investor sentiment soured on nonfarm payrolls due Friday after private sector job creation – which often serves as precursor to nonfarm payrolls – missed forecasts. ADP and Moody's Analytics said U.S. private employers added just 178,000 jobs for the month, short of analysts’ forecasts of 185,000. Gains in gold, however, were limited as investors digested comments from Cleveland Fed President Loretta Mester suggesting the central bank can stick to its gradual approach to monetary tightening, as it could help prolong economic expansion.

Chinese solid waste import ban to hit Copper Scrap import.

The Chinese ban on scrap metal, scrap wire, scrap motor imports is expected to take a hit on 0.330 million tons of Copper scrap imports, as per Jiangxi Copper Corp. The ban will be implemented by the end of 2018. The ban on scrap metal, scrap wire and scrap motor imports could spur some dismantling capacity in China to be relocated to Southeast Asian nations, adding that when mainland Chinese dismantling capacity is renewed, China's copper scrap imports are expected to rebound, as per Jiangxi Copper.

One Shandong Nickel Producer Cuts Output in July on Raw Material Issues, SMM Learns.

One nickel producer in Shandong suspended production from mid July due to raw material issues, Shanghai Metals Market learns. Indonesia Issues New Nickel Ore Export Quota. The producer produced 200 tonnes of nickel in July, down 150 tonnes from June’s, according to SMM sources. The producers remain offline now.

Oil dips on high OPEC supplies, defying falling U.S. crude stocks.

Oil dipped on Thursday as a rally that has pushed up prices by almost 10 percent since early last week lost momentum despite renewed signs of a gradually tightening U.S. market. Strong demand in the United States provided prices with support, traders said, but ongoing high supplies from OPEC producers were restricting further gains. Traders said ongoing high supplies by the Organization of the Petroleum Exporting Countries (OPEC) were capping prices. The high OPEC supplies come despite a pledge by the group, supported by other producers including Russia, to restrict output by 1.8 million bpd between January this year and March 2018 in order to tighten the market. Trading data in Thomson Reuters Eikon shows that crude oil shipments by OPEC and Russia, which excludes pipeline supplies, hit a 2017 high of around 32 million bpd in July, up from around 30.5 million bpd in January.

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