EUROPEAN COMMODITIES UDPDATE: Crude cheers a Christmas ‘gift’ from Novak while the USD aids metals

Analysis details (10:30)

• A particularly quiet Christmas eve-eve session has only been briefly intersected by reporting that N. Korea fired a suspected ballistic missile, which has seemingly landed outside of Japan’s EEZ. Aside from that, the most pertinent development has been the Russian Deputy PM Novak suggesting that Western price caps could cause them to cut oil output by 5-7% or 500-700k BPD in early 2023. Given these factors, the crude benchmarks are firmer on the session with magnitudes more pronounced than across other asset classes; currently, WTI & Brent Fed’23 are firmer by just shy of USD 2.0/bbl, with WTI needing another USD 1.00/bbl of upside to test Thursday’s WTD peak of USD 79.90/bbl.


• Moving to metals, spot gold and silver are incrementally firmer on the session, given the Dollar continues to languish, though the yellow metal remains capped by USD 1800/oz and as such is well within recent ranges. Base metals are similarly supported, but again magnitudes are narrow and within familiar parameters.

23 Dec 2022 - 10:25- MetalsResearch Sheet- Source: Newsquawk