Oil prices still capped by ample supply
Oil prices fell in early trading amid speculation that plentiful supplies will continue to thwart any further rallies. Futures fell 1.3% on the New York Mercantile Exchange.
While growth in US drilling has stalled and Libya’s production revival was dealt a setback by protests, rebounding output is still capping prices, according to Saxo Bank A/S.
A committee co-chaired by Kuwait and Russia will examine why some participants in the deal between the Organization of the Petroleum Exporting Countries and other producers to reduce global supply aren’t fully implementing their cuts. Bloomberg
Cement prices decline marginally
All India cement prices decreased by Rs3 per bag to Rs339 per bag in August 2017 as prices decreased in the west and north while they increased in the east, according to data collated by Kotak Institutional Equities.
Prices declined sharply in the west (by Rs10 per bag), followed by north and south (Rs5 per bag each). The changes are in comparison to the previous month. Prices in the east bucked the trend and saw an improvement of Rs9 per bag.
“Dealers appeared less hassled by the shift in taxation regime, a departure from the state of confusion the same time last month,” Kotak’s analysts wrote in a note to clients.
Price trends since June suggest a Rs6 per bag decline in the second quarter compared to Q2FY18.
Iron ore exports to add heft to shipping
Shipping industry consultant Drewry expects dry bulk shipping charter rates to continue to recover on firm demand and controlled fleet growth. Rising iron ore exports from India are seen as one of the demand drivers.
According to Drewry, iron ore exports from India stood at 20 million tonnes in 2016. This year’s exports are forecast to cross 30 million tonnes.
“We believe India’s return to the seaborne iron ore market will have wide implications for the dry bulk trade in the coming quarters. Iron ore exports from India to China that resumed at a fast pace, could reclaim a part of their lost share from Brazil and Australia,” Rahul Sharan, Drewry’s lead analyst for dry bulk shipping said in a note.