Commodities
U.S.-led coalition blocks attacks at Conoco oil field in Syria -source
© Reuters
BEIRUT (Reuters) -Air defence systems operated by U.S.-led coalition troops based in eastern Syria halted six drone attacks targeting their base at the Conoco oil field on Saturday, a security source said.
The source did not tell Reuters if there were casualties.
Coalition troops and the Kurdish-led Syrian Democratic Forces (SDF), who together fight remnants of the Islamic State group, have faced increased attacks by Iran-backed groups in Syria and Iraq since Hamas’s attack against Israel on Oct. 7.
The head of the SDF, General Mazloum Abdi, told Reuters last week that the U.S. should send additional air defence systems to Syria to protect their bases, after six SDF fighters were killed in one of the drone attacks.
Another drone attack blamed on Iran-backed groups on a border outpost in Jordan killed three U.S. soldiers.
Commodities
China to cut import tariffs on some recycled copper and aluminium raw materials
SHANGHAI (Reuters) – China will reduce import tariffs on ethane and certain recycled and aluminium raw materials from next year, the government said on Saturday.
The Ministry of Finance announced adjustments to various import tariff categories, effective Jan. 1, aimed at increasing imports of high-quality products, expanding domestic demand and promoting high-level opening-up, it said in a statement.
Provisional import tariffs below the most-favoured-nation rates will be applied to 935 items, the ministry said. Import tariffs will be reduced on ethane and certain recycled copper and aluminium raw materials to advance green and low-carbon development.
Tariffs will rise on commodities including molasses and sugar-containing pre-mixed powders will increase but be reduced on items such as cyclic olefin polymers, ethylene-vinyl alcohol copolymers and automatic transmissions for special-purpose vehicles such as fire trucks and repair vehicles.
Import tariffs will also be reduced on items such as sodium zirconium cyclosilicate, viral vectors for CAR-T tumour therapy, and nickel-titanium alloy wires for surgical implants.
The China-Maldives Free Trade Agreement will come into effect on Jan. 1, with tariff reduction implementations, the ministry said.
Commodities
Oil prices settle higher after larger-than-expected drop in US crude stockpiles
Investing.com– Oil prices settled higher Friday after data showed weekly inventories fell more than expected.
At 2:30 p.m. ET (19:30 GMT), rose 1.2% to $74.17 a barrel, and settled higher at $70.60 a barrel.
Trading volumes were thin ahead of the new year’s start as many institutional investors and traders typically take time off during the holiday season. Additionally, year-end profit-taking and portfolio rebalancing reduce trading activity.
US crude inventories fall more than expected
The U.S. Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, reported Friday crude stockpiles for week ended Dec. 20 fell 4.2M barrels, compared with expectations for a decline of just 700,000 barrels.
This drawdown indicates a tightening supply in the U.S. crude oil market, which has implications for global oil prices. Following the API’s report, oil prices had edged higher, supported by hopes for additional fiscal stimulus in China and the reported decline in U.S. crude inventories.
Gasoline inventories rose by 1.6 million barrels last week, while distillate inventories—which include diesel and heating oil—fell by about 1.7 million barrels.
China stimulus hopes persist
Chinese authorities have decided to issue a record-breaking 3 trillion yuan ($411 billion) in special treasury bonds next year, in an intensified fiscal effort to stimulate a struggling economy, Reuters reported on Tuesday.
Moreover, China is allowing local officials to broaden investments with key government bonds and simplifying approvals to better utilize public funding for economic growth, a government document showed on Wednesday.
On Thursday, the World Bank revised its economic growth forecast for China upward for 2024 and 2025 but cautioned that weak household and business confidence, combined with challenges in the property sector, would continue to hinder growth in the coming year.
The outlook for oil demand hinges on the hope that China, the world’s largest oil importer, can revive its economy, especially as there are concerns about a potential oversupply due to expected increases in production from non-OPEC countries.
Ayushman Ojha contributed to this report.
Commodities
Gold prices fall as Treasury yields rise
Investing.com– Gold prices fell Friday, ending the week lower as Treasury yields rose following the U.S. Federal Reserve’s hawkish tilt
was 0.7 at $2,614.40 per ounce, while expiring in February edged 0.9% lower to $2,630.36 an ounce.
Trading in gold typically sees thin volumes and subdued prices toward the year-end as many institutional traders and market participants close their books ahead of the holiday season.
Additionally, at year-end, economic data releases and major policy decisions are typically fewer, reducing catalysts for significant price volatility.
The yellow metal was set to edge up 0.3% for the week after losing more than 1% in the previous one. A strong dollar after the Fed’s hawkish shift last week has continued to put downward pressure on bullion.
Gold slips amid pressure from rising yields
The was slightly lower on Friday, pairing overnight gains, though continued to hover near a two-year high it touched last week. Still, Treasury yields were sharply higher, pressuring the yellow metal.
A weaker dollar often boosts on gold prices as it makes the yellow metal more attractive to buyers using other currencies.
Gold prices had fallen sharply after the Fed policy meeting indicated only two more rate cuts in 2025, against previous expectations of four.
Higher interest rates put downward pressure on gold making it more attractive compared to interest-bearing assets like bonds
Other precious metals were lower on Friday. were down 3.6% to $919.90 an ounce, while were down 1.5% $29.935 an ounce.
Copper gains on concentrate shortage news, strong dollar caps gains
Among industrial metals, copper prices were higher after a Reuters report showed China’s leading copper smelters have set lower processing charge guidance for the first quarter of 2025 compared to this quarter, reflecting an ongoing shortage of copper concentrates.
At a meeting in Shanghai, representatives from the China Smelters Purchase Team agreed on new rates for copper concentrate treatment and refining charges, setting them at $25 per metric ton and 2.5 cents per pound, down 28.6% from the fourth-quarter guidance of $35 per ton and 3.5 cents per pound.
The red metal failed to fully capitalize on this news, as a strong dollar weighed.
Benchmark on the London Metal Exchange rose 0.4% to $8,995.00 a ton, while February edged down 0.1% to $4.1242 a pound.
Ayushman Ojha contributed to this report.
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