Oil continues to surge and gasoline costs present indicators of restoration, Enterprise Benefit PNG’s month-to-month evaluate of Papua New Guinea commodity and monetary markets.
In keeping with Kina Securities, the oil worth has maintained its rise. West Texas Intermediate rose 10 per cent over the month, and is up 43.6 per cent over the yr.
There could also be extra worth rises within the offing. In keeping with a report in The Sydney Morning Herald, US sanctions towards Iran and Venezuela are decreasing spare capability within the world oil markets to ‘wafer-thin ranges very quick’.
‘If something goes unsuitable within the geopolitical cauldron of world power over the subsequent six months, we’ll uncover whether or not Saudi Arabia actually is able to cranking up an additional two million barrels a day of crude,’ the SMH report says.
‘The legendary Ghawar subject (in Saudi Arabia) is badly depleted. It can’t pump greater than three.eight million barrels a day.
‘This can be a first-order shock. The corporate (Aramco) has all the time asserted with magisterial confidence that it may well produce 5 million barrels a day with out issue.’
Oil analysts Westbeck Capital are predicting a worldwide provide deficit of 1.three million barrels a day by the third quarter of this yr even when OPEC matches all of the misplaced oil from Iran sanctions.
In the meantime, LNG costs are additionally recovering, based on Kina. LNG Japan/Korea is up 17.5 per cent for the month, though it’s down 40 per cent over the yr.
Treasured metals costs have moved sideways. Gold was down 1.2 per cent for the month and has risen zero.1 per cent over the yr, based on Kina.
‘The cocoa worth rose 1.6 per cent for the month.’
The silver worth was down zero.1 per cent over the month, and is down three.7 per cent for the yr.
Copper got here off barely, however stays robust. It was down zero.2 per cent over the month, based on Kina, however has risen 9 per cent over the yr.
Agriculture costs have been secure. The palm oil worth rose 1.eight per cent for the month, based on Kina, and is up 2.three per cent for the yr.
The cocoa worth rose 1.6 per cent for the month however is up 5 per cent for the yr.
‘Steamship Buying and selling Firm shares have been up 12 per cent over the month.’
Espresso costs fell 2.6 per cent for the month and are down 9.6 per cent for the yr.
The inventory market rose. The KSI House Index (PNG-listed shares solely) was up 1.2 per cent over the month, and is up three.2 per cent over the yr.
The KSI Index (which incorporates dual-listed shares as nicely) went sideways. It rose zero.1 per cent within the month and is up zero.2 per cent over the yr.
Steamship Buying and selling Firm shares have been up 12 per cent over the month, though they’re nonetheless down 5.three per cent over the yr.
The Australian All Ordinaries Index rose three.four per cent over the month and is up 13.three per cent over the yr.
America’s S&P 500 had a month-to-month rise of three.9 per cent and is up 16.7 per cent over the yr based on Kina Securities.
The Kina was down zero.2 per cent over the month towards the US greenback. The foreign money was up 1 per cent over the month towards the Australian greenback, based on Kina Securities.
Half-year Treasury Payments are four.71 per cent, whereas full-year Payments are 6.66 per cent.