1. U.S. oil demand rebound stalls
- Oil prices sank this week along with broader financial indices. But oil was also dragged down by the stagnating demand recovery.
- U.S. gasoline demand has plateaued just as peak U.S. driving season came to a close. In the last week of August, demand actually fell by 1.9 percent compared to the week before. The four-week average in August was down 18 percent from a year earlier.
- “The plateauing in demand is a symptom of the continuing aggressiveness of the coronavirus and is telling us that it will take longer to get back to normal,” said Daniel Yergin, vice chairman, IHS Markit, said in a statement.
- Meanwhile, India’s oil demand is still down 20 percent from year-ago levels.
- However, China posted a 19 percent increase in oil demand in July from the same month a year earlier.
- Still, oil prices plunged this week as both the fundamentals and the broader economic backdrop took on a gloomier tinge.
2. Copper prices continue to surge
- Speculative positioning on copper futures is the most bullish since the second quarter of 2018 in a “massive collective U-turn since the first quarter of 2020,” according to Reuters.
- A surge in imports from China has dramatically tightened copper markets. Imports have increased 38 percent this year to 4.27 million tonnes.
- At the same time, copper concentrate supply has decreased 1.4 percent by bulk…