#forexbreakfast Commodities 10/05/2022
The general Bloomberg Commodity Index (0.7%) had another positive week last week, but the gain was entirely due to the energy sector, as the others all closed in the negative.
The energy sector (+6.5%) has reached a new high in nearly seven years. The worst performing sector was industrial metals (-5.7%), which fell for the sixth week in a row.
Positive week for oil prices, as the possibility of European ban on Russian oil became more concrete. Meanwhile, OPEC+ has decided to confirm a 430,000 b/d increase in production for the month of May. Brent continues to trade within a triangle, the break of which could result in a price increase. If the upper part of the triangle that is currently passing around $110 is definitively broken, there is the possibility of a further bullish leg towards $120.
Copper prices fell below 9500$/t for the first time since late January due to concerns about weak Chinese demand. Technically, the break of the bullish trendline that has been in place since last December was confirmed in the previous week. This has resulted in a violent bearish leg that has hit a first stumbling block in the form of the static support at $9337. Even lower, the medium-term bullish trendline, which is currently close to the 9000$/t area, determines the level to be monitored.