No Lead Balloon Here!
Lead: 3-month Lead futures traded on the London Metal Exchange continue to hover near all-time highs this morning. Increasing Chinese demand and lower world output are among the catalysts for the sharp price rise. Disruptions to supplies out of Australia are expected to cut world Lead output by 4% this year. 3-month Lead is currently trading at $3865 per ton.
Crude Oil: Oil futures prices keep climbing, trading over $82 per barrel in early trade on concerns that energy product inventories will be tight this quarter. In this morning’s energy stocks report, U.S. Distillate stocks are expected to show a drop of 775,000 barrels last week, according to a Bloomberg News survey. Gasoline inventories should show a more modest decline of between 300,000 and 500,000 barrels. In early trade, November Crude Oil is trading at $82.05, up $0.73.
Gold: A weak U.S. Dollar is supporting Gold futures prices this morning, as traders continue to look at the yellow metal as a hedge against inflation. However, some analysts caution that Gold prices may be due for a correction, as speculative net-long positions in the U.S. approach record highs. In early trade, December Gold is trading at $752.20, up $6.00.
Mike Zarembski, Senior Commodity Analyst
