Nickel prices rose at the Shanghai Metals Exchange by 1.8% on Wednesday, while also surging at the London Metals Exchange after reports about cuts in Indonesian nickel mining. 

Nickel spot prices in Asian trade surged by 1.1%, while three-month futures rose by over 1.8%. 

Indonesian reports indicate that allotted quotas for nickel mining might fall by 27% by 2026, with the government potentially enacting new licensing fees on specific types of nickel crudes, which would hinder output and profits further. 

Already last week there were reports that Indonesian nickel imports between January and October 2024 rose by 50 folds y/y, and reached 9.3 million tons as Indonesian officials seek to hoard the country’s nickel reserves for local industry.

Otherwise, the dollar index rose 0.5% as of 14:48 GMT to 106.7, with a session-high at 106.7, and a low at 106.1.

On trading, nickel spot prices rose 1.8% as of 14:58 GMT to $15.9 thousand a ton.

Oil prices rushed higher in American trade on Wednesday to a week high and extended the gains for the third straight session amid mounting tensions between Russia and Ukraine, which could disrupt oil supplies from the world’s second largest crude producer. 

That overshadowed initial data that showed US crude stocks rose past estimates last week, with traders now waiting for official EIA data later today.

Prices

US crude rose 0.95% today to $69.89 a barrel, a November 11 high, with a session-low at $69.18.

Brent rose 0.9% to $73.89 a barrel, a November 11 high, with a session-low at $73.21.

On Tuesday, US crude rose 0.3%, while Brent added 0.2% as aggression flares in the Ukrainian war. 

Ukraine-Russia Tensions 

The Ukrainian forces executed their first strike on a border area with Russia using American missiles, while Russian president Vladimir Putin approved an update to the nuclear doctrine, expanding the conditions of their use. 

the US Biden administration allowed Ukraine to use American made weapons to hit deeper into Russia according to media sources.

The Kremlin warned that such a decision would directly implicate the US into the conflict, and accused the Biden administration of escalation.

It comes after Russia launched its heaviest airstrikes on Ukraine in more than three months, causing severe damage to the country’s energy network.

US Stocks 

Initial data from the American Petroleum Institute showed a surge of 4.75 million barrels in US crude stocks in the week ending February 15, passing estimates of a 0.8 million barrels buildup.

Now traders await the official report from the EIA, expected to show a drawdown of 0.1 million barrels. 

Bitcoin rallied on Wednesday and maintained its gains for the third straight session, after managing to pierce the $94,000 barrier yesterday for the first time ever, as traders look forward to US President-elect Donald Trump supportive policies for the crypto industry.

Reports indicated that the social media company owned by Donald Trump is in talks to acquire the crypto trading company “Bakkt”, which would reinforce Trump’s alliance with the crypto system.

Otherwise, the MicroStrategy firm announced a new round of bitcoin purchases valued at nearly $5 billion, with the company’s total holdings of the cryptocurrency amounting $29 billion.

Prices

Bitcoin rose 2.1% today and hit a record high at $94,057 amid strong investment demand. 

On Tuesday, bitcoin rose 2.1% and scaled a record high at $94,057. 

Crypto Market Value 

The market value of cryptocurrencies rose by $35 billion today to $3.250 trillion as both bitcoin and ethereum rebounded.

The market value hit a record high yesterday at $3.270 trillion.

Trump Developments

The Financial Times reported that Trump’s media and technology company, which manages the Truth Social platform, is about to acquire Bakkt through a share swapping deal. 

Trump has vowed to found a supportive organizational framework for crypto assets, and a US bitcoin strategic reserve. 

MicroStrategy’s Purchases 

The MicroStrategy firm announced another purchase of 51,780 bitcoins valued at about $5 billion, making it the biggest crypto purchase by the company so far.

Microstrategy focuses on institutional programming, and has adopted a strategy of acquiring crypto assets, with their total bitcoin holdings reaching $29 billion so far.

The company announced plans to collect nearly $42 billion worth of bitcoin through the next three years as a method to diversify holdings and protect against inflation.

The Canadian dollar rose against most major rivals on Tuesday following inflation data.

Earlier government data showed producer prices rose 0.4% m/m last month, passing estimates of a 0.3% rise. 

On a yearly basis, prices rose 2.5% in October, above estimates of 2.4%.

On trading, the CAD/USD pair rose 0.3%% as of 20:27 GMT to 0.7159.

Aussie 

The Australian dollar rose 0.3% against its US counterpart as of 20:27 GMT to 0.6530.

US Dollar

The dollar index was little changed at 106.2 as of 19:19 GMT, with a session-high at 106.6, and a low at 106.1.

It comes after reports indicating the White House allowed Ukraine to use long-range American-made weapons in its war with Russia. 

The war in Ukraine has been ongoing for a thousand days now, with concerns mounting about a potential attack on energy supplies, especially as the winter begins in earnest. 

The Associated Press reported that the US decision to allow the use of American weapons to hit deep inside Russia comes after Russia deployed North Korean troops alongside its northern borders with Ukraine. 

Ukrainian forces attacked a military base inside Russia and American missiles. 

Recently, Russian President Vladimir Putin signed a decree reducing the strict conditions that would allow the use of the country’s nuclear arsenal.