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Commodities under pressure on weaker energy sector - ANZ

Analysts at AND explained that the commodities remained under pressure from a weak energy sector.

Key Quotes:

"The weaker USD saw oil prices pushed nearly 3% higher in early trading. However, lingering concerns over weak demand and burgeoning inventories eventually weighed on prices. WTI ended the day below USD40/bbl for the first time since April.

News that Nigeria is close to reaching a cease-fire with militants stocked fears that oil exports would be increasing shortly. Iron ore also struggled to hold its gains, with traders sitting on the sidelines of a few days of strong gains.

Base metals were mixed, with the upward moves largely contained by the weak oil prices. Nickel had been up as much as 2.5% after Philippine President Rodrigo Duterte told mining companies to comply with environmental laws or close."

"Weaker equity markets and the stronger yen saw gold push higher. The spectre of another stimulus package in Japan is likely to see investor demand remain strong for the precious metal."

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