Commodities Daily - August 16, 2019

> Oil reacts to mixed US-China trade comments, US data; OPEC report eyed. This morning, Brent is trading close to $59/bbl following Donald Trump's comment that "I think the longer it (trade war) goes the stronger we get." Trump also said that he had "a feeling it's going to go fairly short." Today, investors will eye OPEC's monthly report, eurozone trade data, and US housing starts and consumer sentiment. Absent a Chinese response to the new US tariffs, Brent has the potential to rally toward $60/bbl amid improving risk sentiment today, with the OPEC report likely to reiterate the threat of oversupply next year amid slowing demand, an outlook that would not be a surprise for investors.> Gold trading sideways; today likely to be uneventful. Yesterday's weak industrial production and jobless claims data from the US provided a boost to gold prices. The persisting uncertainty surrounding the trade negotiations between the US and China added support, keeping gold above $1,510/oz. Today's data flow includes trade statistics from the eurozone, along with housing starts and consumer sentiment from the US.> Base metal prices mixed, nickel continues strong rally. Yesterday, China promised to take countermeasures against the latest round of tariffs on Chinese imports. Donald Trump, meanwhile, plans to hold a phone call with his counterpart Xi Jinping. July data on refined copper and refined zinc production out of China came in weak. Nickel prices, meanwhile, continue to rally on expectations of steps by Indonesian regulators.