EUROPEAN COMMODITIES UPDATE: Broader Dollar strength weighs on the complex while newsflow remains light

Analysis details (09:44)

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  WTI and Brent June futures are on the backfoot despite a lack of drivers at the time, with the former surrendering its USD +80/bbl status (vs USD 81.24/bbl high) while the latter fell under USD 84/bbl (vs USD 85.15/bbl high), with the index near session highs, although the crude selling did not coincide with Dollar action at the time. Desks suggest there are lingering concerns regarding the demand outlook, and “Weaker refinery margins will be adding to these concerns”, according to ING. The analysts suggest “Activity and trade data [from China] also suggest that apparent oil demand over March was strong”, however, despite the strong numbers “it would appear that China still built crude oil inventories over the month”. Aside from that, complex-specific newsflow is light this morning, with broader market sentiment also subdued. Elsewhere, eyes remain on the Iraq-Ceyhan pipeline which reportedly remained closed on Tuesday as the Baghdad-Ankara dispute drags – according to recent reports via Reuters. Elsewhere, natural gas prices are relatively stable and uneventful, with US Henry Hub futures flat and Dutch TTF subdued amid the broader subdued sentiment.


• Metals see broad pressure from the firmer Dollar. Spot gold relinquished its USD 2,000/oz handle. The yellow metal found resistance near its 10 DMA (2,006.50/oz) before aggressively falling under its 21 DMA (1,990.09/oz), and some more, to a current session low of 1,977.90/oz (at the time of writing). Industrial metals see broad-based losses across the board, with 3M LME copper back under the USD 9,000/t mark, albeit within a relatively tight USD 8,878-9,011/t intraday range. LME tin meanwhile pulls back following its recent supply-induced gains as the metal conforms to the broader sentiment.

19 Apr 2023 - 09:45- MetalsResearch Sheet- Source: Newsquawk