Summary:

• WTI crude oil prices rose in the wake of fears that a recession could hurt demand were balanced by continuous concerns around supply.
• Arabica coffee prices were down from a three-week high on Wednesday.
• Palladium supply concerns weighed against demand concerns.

Read next: Exxon (XOM) Price Falls In the Wake Of Declining Energy Prices 

WTI Oil prices have been falling since mid-June

WTI crude oil futures prices rose above during Wednesday's trading day after falling more than 8% and closing below the key level on Tuesday in the wake of fears that a recession could hurt demand were balanced by continuous concerns around supply. Wednesday Crude price was also attributed to (by some analysts) bargain hunting and short-coverings. Tight supply concerns were highlighted by OPEC’s Secretary general who announced on Tuesday that the oil industry was “under siege” in the wake of years of underinvestment, he also added that the shortages could be eased if Venezuelian and Iranian crude oil supplies were allowed. At the same time, crude prices have been falling since mid-June in the wake of recessionary concerns causing poor demand prospects.

WTI Crude Oil Aug Futures Price Chart

Coffee prices down as supply prospects improve

Arabica coffee prices were down from a three-week high on Wednesday in the wake of both positive global outlook of improved production and a bearish macroeconomic environment. Although supplies are expected to improve, prospects of tight supply remain as concerns around dry weather conditions in Brazil continue.

Coffee Sep ‘22 Futures Price Chart

Traders weighing supply vs demand on Palladium

Traders are currently trying to balance fears of tight supply with weak demand prospects, setting the Palladium metals price above its 1-month low hit on 4th July. Continuous aggressive monetary policy tightening from the Federal Reserve has strengthened prospects of a recession and has dampened demand. In addition, new Covid-19 cases in the world's largest Palladium consumer sparked fears for the imposition of tighter lockdown measures. On the supply side, disruptions of imports from Russia continue as the war in the Ukraine continues and trade restrictions continue to be imposed from the west onto Russia.

Palladium Sep ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingeconomics.com