Commodity Futures for the Week of October 13-17
Over the coming week analysts are predicting a fall in the price of natural gas after the Energy Information Administration reported that US natural gas inventories rose by 105 billion cubic feet in the week ending October 3rd. At the same time weather forecasts are showing no threat of prolonged periods of below-freezing readings which means that the demand for gas will be low. Last week saw Natural Gas fall from 4.022 down to 3.861.
Gold has also been falling as the dollar has been strengthening. While the price rose steadily last week it began falling after better than expected US employment data backed the case for an earlier interest rate hike. The dollar is expected to strengthen in the coming days so all precious metal prices are almost certain to fall.
Brent crude fell to its lowest level in almost four years last week while West Texas Intermediate crude fell to a 27 month low. The low came as the result of rising global supply and worsening economic conditions in Europe. The American Petroleum Institute said that US crude inventories increased by 5.1 million barrels in the week ending October 3, more than the predicted 1.4 million barrels.