EUROPEAN COMMODITIES NEWS: Rangebound trade across most commodities but industrial metals gain

Analysis details (10:01)

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  WTI and Brent futures are choppy and off overnight highs as sentiment in European trade turns somewhat cautious in early hours in the absence of major macro updates, but ahead of a myriad of central bank speakers. Macro newsflow has been light thus far today aside from some geopolitical updates – with China announcing measures against the US with regards to the Taiwanese arms sales – with two US defence names alongside their senior executives included in China’s unreliable entity list. The move from China underscores the rising tensions between the US and China ahead of a touted meeting between US Secretary of State Blinken and China’s top diplomat Wang Yi – who would meet at the Munich Security Conference which runs from February 17th-19th. National security is likely to be high on the agenda following the “spy balloon” incidents. The talks will likely touch on several themes, with the overarching issue being the US-China decoupling. All-in-all, it is unlikely that a breakthrough will be reached in talks, but the tone of commentary from both sides will be watched, whilst a joint press conference could be received as a positive. Aside from that, crude-specific newsflow has been light. WTI March and Brent April futures reside towards the bottom end of their current intraday ranges (78.42-79.52/bbl and 85.19-86.21/bbl respectively). Gas markets diverge with US Henry Hub futures are firmer above USD 2.50/MMBtu whilst Dutch TTF sees losses but remains above EUR 50/MWh – with both benchmarks contained within recent ranges.


• Spot gold is flat intraday as the DXY remains caged to a tight band as participants look ahead to several Fed and ECB speakers, with the yellow metal in a USD 1,835.72-1,844.88/oz intraday range (vs yesterday’s 1,830.63-1,860.16/oz parameter). Elsewhere, base metals are mixed with 3M LME copper re-eyeing USD 9,000/t from a USD 8,914.50/t intraday low. Overnight Dalian and Singapore iron ore futures were also supported. Desks suggested the gains across the industrial metals are driven by China reiterating its determination to support economic growth.

16 Feb 2023 - 10:04- MetalsEconomic Commentary- Source: Newsquawk