Latest news with #KavyaBalaraman
Yahoo
3 days ago
- Automotive
- Yahoo
Platinum surges, palladium lags on narrow demand profile
By Anushree Mukherjee and Kavya Balaraman (Reuters) -Platinum and palladium prices have both rallied this month, notching a more than four-year and seven-month high respectively, but analysts say they remain more cautious about the outlook for palladium due to its narrower demand base. Spot platinum was trading at $1,272.45 per ounce as of 1545 GMT on Wednesday, its highest level since February 2021, and has risen 41% this year on supply concerns, renewed investor interest following London Platinum Week in May, and increased jewellery demand as high gold prices drive consumers to cheaper alternatives, analysts say. Spot palladium, meanwhile, was trading at $1,078.62/oz, its highest level since November 2024, and has gained 18% this year, but has struggled to reach the high of $1,244.75 hit in October 2024. "The biggest factor is likely the wider appeal which platinum enjoys. Platinum's uses are more diverse, spanning industrial applications, jewelry, and investor demand," said Zain Vawda, market analyst at MarketPulse by OANDA. "This diversification shields platinum from the headwinds palladium faces, such as declining long-term demand from the traditional automotive market due to the EV transition." Palladium is mainly used in catalytic converters for gasoline vehicles, while platinum has broader uses in diesel catalytic converters, jewellery, industrial applications, and emerging hydrogen technologies. PALLADIUM PRICES LAGGING Palladium could be considered a "one trick pony", with 90% of its demand coming from car manufacturers, Bank of America said in a note last week. "China's rising EV penetration rates are particularly damaging because it means that palladium-intensive cars with a gasoline engine are now being quickly displaced," the note added. The transition to EVs will also affect platinum in the medium term, but to a lesser extent, analysts told Reuters. "Large commercial vehicles will likely use larger amounts of platinum (relative to palladium) and these vehicles will be slower to electrify. Over time, the hydrogen economy will also absorb some platinum, limiting the downside risk on platinum versus palladium," said Nitesh Shah, commodities strategist at WisdomTree. Global sales of battery-electric vehicles and plug-in hybrids rose to 1.5 million in April. Sales in China were up 32% from the same month of 2024 to 0.9 million vehicles. PLATINUM RALLIES Platinum, meanwhile, is expected to be moderately supported over the next six to 12 months, although the upside may be capped without a clear rebound in auto demand or meaningful acceleration in hydrogen-related applications, said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. Platinum jewellery demand is likely to continue benefiting from high gold prices, analysts said. "We believe that platinum will retain recent gains and could rise a little further as gold and silver gain. We are less confident that palladium will go much higher until turbulence in the auto industry settles," Shah added. Gold has surged 27% this year, touching multiple record highs, while silver has risen 26% in 2025. Sign in to access your portfolio
Yahoo
3 days ago
- Automotive
- Yahoo
Platinum surges, palladium lags on narrow demand profile
By Anushree Mukherjee and Kavya Balaraman (Reuters) -Platinum and palladium prices have both rallied this month, notching a more than four-year and seven-month high respectively, but analysts say they remain more cautious about the outlook for palladium due to its narrower demand base. Spot platinum was trading at $1,272.45 per ounce as of 1545 GMT on Wednesday, its highest level since February 2021, and has risen 41% this year on supply concerns, renewed investor interest following London Platinum Week in May, and increased jewellery demand as high gold prices drive consumers to cheaper alternatives, analysts say. Spot palladium, meanwhile, was trading at $1,078.62/oz, its highest level since November 2024, and has gained 18% this year, but has struggled to reach the high of $1,244.75 hit in October 2024. "The biggest factor is likely the wider appeal which platinum enjoys. Platinum's uses are more diverse, spanning industrial applications, jewelry, and investor demand," said Zain Vawda, market analyst at MarketPulse by OANDA. "This diversification shields platinum from the headwinds palladium faces, such as declining long-term demand from the traditional automotive market due to the EV transition." Palladium is mainly used in catalytic converters for gasoline vehicles, while platinum has broader uses in diesel catalytic converters, jewellery, industrial applications, and emerging hydrogen technologies. PALLADIUM PRICES LAGGING Palladium could be considered a "one trick pony", with 90% of its demand coming from car manufacturers, Bank of America said in a note last week. "China's rising EV penetration rates are particularly damaging because it means that palladium-intensive cars with a gasoline engine are now being quickly displaced," the note added. The transition to EVs will also affect platinum in the medium term, but to a lesser extent, analysts told Reuters. "Large commercial vehicles will likely use larger amounts of platinum (relative to palladium) and these vehicles will be slower to electrify. Over time, the hydrogen economy will also absorb some platinum, limiting the downside risk on platinum versus palladium," said Nitesh Shah, commodities strategist at WisdomTree. Global sales of battery-electric vehicles and plug-in hybrids rose to 1.5 million in April. Sales in China were up 32% from the same month of 2024 to 0.9 million vehicles. PLATINUM RALLIES Platinum, meanwhile, is expected to be moderately supported over the next six to 12 months, although the upside may be capped without a clear rebound in auto demand or meaningful acceleration in hydrogen-related applications, said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. Platinum jewellery demand is likely to continue benefiting from high gold prices, analysts said. "We believe that platinum will retain recent gains and could rise a little further as gold and silver gain. We are less confident that palladium will go much higher until turbulence in the auto industry settles," Shah added. Gold has surged 27% this year, touching multiple record highs, while silver has risen 26% in 2025.
Yahoo
30-05-2025
- Business
- Yahoo
Oil price outlook weakens on OPEC+ hikes, lingering trade concerns
By Sarah Qureshi and Kavya Balaraman (Reuters) - Analysts have revised down their oil price forecasts for the third consecutive month as swelling OPEC+ supply and lingering uncertainty around the impact of trade disputes on fuel demand weigh on prices, a Reuters poll showed. A survey of 40 economists and analysts in May forecasts Brent crude will average $66.98 per barrel in 2025, down from April's $68.98 forecast, while U.S. crude is seen at $63.35, below last month's $65.08 estimate. Prices have averaged roughly $71.08 and $67.56 so far this year respectively, as per LSEG data. While tensions have somewhat eased between the U.S. and other trade partners, trade conflicts still loom as a key factor that could weaken oil demand, said Tobias Keller, analyst at UniCredit. "On the supply side, oil prices will be heavily influenced by OPEC+ production decisions, while geopolitical tensions... pose ongoing risks of disruption and price volatility," Keller added. Eight OPEC+ members began unwinding output cuts earlier this year, agreeing to larger-than-expected increases of 411,000 bpd for May and June. The members may decide on a similar output hike for July at a meeting on Saturday, sources have told Reuters. The move "seems driven by a desire to punish non-compliant members rather than support oil prices at any specific level. Compliance will be hard to enforce, especially in Kazakhstan," said Suvro Sarkar, lead energy analyst at DBS Bank. Meanwhile, analysts polled by Reuters expect global oil demand to grow by an average of 775,000 barrels per day in 2025, with many pointing to elevated trade uncertainty and the risk of economic slowdown as key concerns. This compares to the 740,000 bpd 2025 average demand growth forecast from the International Energy Agency earlier this month. With U.S. consumption and China oil demand constrained by fuel efficiency gains, economic uncertainty and the shift to electric mobility, "demand growth is largely coming from the resource nations themselves," said Norbert Ruecker, head of economics & next generation research at Julius Baer. Meanwhile, Russia's war in Ukraine continues to pose a geopolitical risk premium for oil. Analysts say markets have largely priced in the uncertainty. "Potential de-escalation efforts and the possibility of lifting sanctions on Russian oil could further lower prices," said Sarkar. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Oil price outlook weakens on OPEC+ hikes, lingering trade concerns: Reuters poll
By Sarah Qureshi and Kavya Balaraman (Reuters) - Analysts have revised down their oil price forecasts for the third consecutive month as swelling OPEC+ supply and lingering uncertainty around the impact of trade disputes on fuel demand weigh on prices, a Reuters poll showed. A survey of 40 economists and analysts in May forecasts Brent crude will average $66.98 per barrel in 2025, down from April's $68.98 forecast, while U.S. crude is seen at $63.35, below last month's $65.08 estimate. Prices have averaged roughly $71.08 and $67.56 so far this year respectively, as per LSEG data. While tensions have somewhat eased between the U.S. and other trade partners, trade conflicts still loom as a key factor that could weaken oil demand, said Tobias Keller, analyst at UniCredit. "On the supply side, oil prices will be heavily influenced by OPEC+ production decisions, while geopolitical tensions... pose ongoing risks of disruption and price volatility," Keller added. Eight OPEC+ members began unwinding output cuts earlier this year, agreeing to larger-than-expected increases of 411,000 bpd for May and June. The members may decide on a similar output hike for July at a meeting on Saturday, sources have told Reuters. The move "seems driven by a desire to punish non-compliant members rather than support oil prices at any specific level. Compliance will be hard to enforce, especially in Kazakhstan," said Suvro Sarkar, lead energy analyst at DBS Bank. Meanwhile, analysts polled by Reuters expect global oil demand to grow by an average of 775,000 barrels per day in 2025, with many pointing to elevated trade uncertainty and the risk of economic slowdown as key concerns. This compares to the 740,000 bpd 2025 average demand growth forecast from the International Energy Agency earlier this month. With U.S. consumption and China oil demand constrained by fuel efficiency gains, economic uncertainty and the shift to electric mobility, "demand growth is largely coming from the resource nations themselves," said Norbert Ruecker, head of economics & next generation research at Julius Baer. Meanwhile, Russia's war in Ukraine continues to pose a geopolitical risk premium for oil. Analysts say markets have largely priced in the uncertainty. "Potential de-escalation efforts and the possibility of lifting sanctions on Russian oil could further lower prices," said Sarkar. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
