Category: Commodity

Oil prices rebounded on September 14 as markets focused on tighter supply outlooks. The International Energy Agency (IEA) said that Saudi Arabia and Russia's extension of oil output cuts to the end of 2023 will mean a substantial market deficit through the fourth quarter. Gold prices also edged higher as investors anticipated a pause in interest rate hike at the US Federal Reserve's policy outcome on September 20.

The prices of red chilli, India's most exported single spice, are expected to rise again due to higher festive demand and weak rains in the coming weeks. The prices have fallen from ₹250 per kg to around ₹230 per kg in recent weeks due to subdued export demand and accumulation of sufficient inventory. However, the prices are expected to rise again in the coming weeks due to the Dussehra festival season and the late setting in of the southwest monsoon.

Crude oil prices rose 2% on Friday, supported by concerns about lower supplies from key producers. However, the strength of the US dollar, which reached a six-month high, weighed on the oil market. Investors will be closely monitoring upcoming data releases in the coming week for further clues about the direction of the commodities markets.

Global financial markets came under pressure last week as investors turned their attention to a number of key issues, including China's real estate troubles, the potential for more Fed rate hikes, and differing opinions on Europe's rate outlook. The US dollar index surged to a six-month high, while US treasury yields rose. Global equity markets fell, and oil prices rose. The upcoming week will bring a focus on US inflation figures, retail sales data, the ECB monetary policy meeting and a range of Chinese economic data releases. Investors should monitor these factors and adjust their investment strategies accordingly.