The oil price has been extremely volatile, while LNG has strengthened. The cocoa price is also up sharply. Business Advantage PNG’s monthly overview of commodity and financial markets.

The oil price jumped then fell back after the Saudi strike Source: YCharts

The oil price has been extremely volatile because of a drone attack on Saudi refining facilities on September 14, which reportedly took out half the country’s output. Saudi Arabia currently provides about five per cent of world supply.

The oil price jumped by a fifth in the day after the attack, but then fell back due to Saudi reassurances that the disruption would be temporary. According to Kina Securities, the price is actually down 0.5 per cent over the month. It is currently trading at US$56.18 according to markets.businessinsider.com.

‘Gold has eased slightly.’

Meanwhile, gas prices have strengthened by 22.7 per cent over the month, according to Kina, although this only recoups previous falls.

Over the year to date, the price is down 36.6 per cent. The price is current US$5.71 per Metric Million British Thermal Units (mmBtu).

Metals

Gold has eased slightly, falling by 1.4 per cent over the month to US$1,515.20 an ounce. It is up by a 18.3 per cent for the year to date, according to Kina.

‘Cocoa prices have soared 17.9 per cent over the month.’

Silver also eased, falling 2.2 per cent to US$17.91 an ounce. But, according to Kina, it is up 15.3 per cent in the year to date.

The copper price was unchanged over the month at US$2.58 per pound; it is up 2.2 per cent for the year.

Agribusiness

Cocoa beans. Credit: Pixabay

Cocoa prices have soared 17.9 per cent over the month. However, they are only up 3.7 per cent for the year to date.

The coffee price was also strong. It was up 9.7 per cent for the month although it is down one per cent for the year to date.

‘The big mover was Oil Search, which rose 13.7 per cent over the month.’

Malaysian palm oil prices are down slightly by 2.2 per cent over the month but are up 5.1 per cent for the year to date.

Equities

The KSi Home Index (stocks listed only in Papua New Guinea) fell by 1.4 per cent over the month but it is up 27.6 per cent for the year to date. The KSi index (which includes dual-listed stocks was up one per cent over the month and is up 12.6 per cent for the year to date.

The big mover was Oil Search, which rose 13.7 per cent over the month after the reported positive end to negotiations between Total and the government over the Papua LNG project.

The Australian All Ordinaries Index rose by 2.7 per cent over the month, but is up 18.8 per cent for the year to date, according to Kina. America’s S&P 500 was up 1.8 per cent for the month and up 18.8 per cent for the year to date.

The Kina was steady against most currencies over the month, although it weakened 1.3 per cent against the British pound and was 1.7 per cent stronger against the Japanese yen.

Half year Treasury Bills are trading at 4.7 per cent, while full year Bills are trading at 7 per cent. Inscribed stock for 2018-21 is yielding 7.99 per cent.