Oil and LNG prices are showing strength but cocoa and palm oil prices price have weakened. Business Advantage PNG’s monthly review of Papua New Guinea’s commodity and financial markets.

The five year crude oil price Source: Infomine

The West Texas Intermediate oil price is up 4.8 per cent for the month and 17.7 per cent for the year, according to Kina Securities.

The LNG price has also risen, reports Kina. It is up 1.8 per cent for the month and 3.8 per cent for the year.

According to the BBC, the rising oil price is due to shifts in production.

‘Oil prices have hit a four-year high of over US$81 a barrel after Saudi Arabia and Russia rejected calls by Donald Trump to increase production.

‘The silver price was down 3.8 per cent over the month and has fallen by 16.7 per cent over the year.’

‘Saudi Arabia leads the Opec oil cartel, while Russia is the biggest oil producer outside the group.

US President Donald Trump

‘In a tweet last week, US president Donald Trump said that Opec “must get prices down now!” by raising global output.

‘“We protect the countries of the Middle East,” added Mr Trump. “They would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember.”’

Cocoa

Agriculture prices are weaker. Cocoa prices fell by five per cent over the month, although it is up 16 per cent over the year, according to Kina.

Coffee prices were stable, up 0.3 per cent over the month. But prices are down by almost a quarter over the year. Palm oil fell 3.5 per cent for the month, according to Kina.

Gold was steady. It was up 0.4 per cent over the month, but is down 7.7 per cent over the year.

The silver price was down 3.8 per cent over the month and has fallen by 16.7 per cent over the year.

‘On the currency markets, the kina was relatively steady against all the major currencies.’

Copper was up 1.3 per cent over the month.

Equities

The KSI Home Index (PNG-listed stocks only) rose 0.3 per cent in the month, according to Kina, and is up 3.8 per cent for the year.

The KSI Index (which includes dual listed stocks) had a monthly fall of 2.9 per cent but is up 0.8 per cent over the year.

The Australian All Ordinaries Index fell by 1.2 per cent over the month and America’s S&P 500 was up by 1.6 per cent over the same period.

On the currency markets, the kina was relatively steady against all the major currencies. Over the year, it has fallen by 2.7 per cent against the US dollar but is up 4.7 per cent against the Australian dollar.

Half year Treasury Bills are trading at 4.73 per cent, while full year Bills are trading at 8.06 per cent.

Three year inscribed stock has an interest yield of 9.53 per cent.