COMMODITY MORNING CALL: CRUDE 125.02 -0.92% COTTON 89.67 +0.01%

Brent crude futures fell during Asian trading after reports from Iranian TV that a Saudi oil pipeline had exploded were denied by Saudi authorities. Brent futures surged to around $128 per barrel briefly before gradually falling as the rumour was denied. The rumour based on a fire in an industrial estate in a town near Saudi Arabia’s Ras Tanura refinery. In a Bloomberg poll 56% of analysts forecast oil will increase through to 9th March, 32%, predicted prices will fall and 12% estimated there will be little change. Last week, 43 percent of surveyed analysts expected an increase.

oil price saudi pipeline explosion rumour

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Cotton futures prices were broadly unchanged overnight. In a bearish note, the weekly USDA export sales report showed exports down 57% from the previous week. Meanwhile markets were encouraged by news from China that the National Development and Reform Commission will buy 2012/13 cotton for its state reserves at the equivalent price of $1.45 per lb, 3% higher than this season and far more than US growers can expect to receive.

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Peter Sainsbury

Materials Risk provides commodity market insights across your supply chain by highlighting emerging risks and opportunities and providing advice on commodity buying and managing risk. All views expressed on this website are those of Materials Risk only. See our About page and terms and conditions for more details. Materials Risk was founded by Peter Sainsbury who you can follow on Google+ and Quora

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