EUROPEAN COMMODITIES UPDATE: Caged trade across commodities amid the cautious risk tone

Analysis details (09:35)

WTI and Brent futures are consolidating after yesterday’s ISM-induced declines which saw the most liquid contract settle lower by almost USD 3/bbl a piece. The complex went into the European open with modest gains which have since dissipated amid the cautious risk tone, with WTI Jan back under USD 77/bbl (vs USD 77.88/bbl high) and Brent Feb under USD 83/bbl (vs 83.69/bbl high). Overnight, constructive COVID headlines from China failed to spur much action in the crude space; Beijing's city government stated it no longer requires negative PCR test results for people entering supermarkets and commercial buildings. Meanwhile, Russian Deputy PM Novak hit the wires and said Russia may reduce oil production, but not by much, and added domestic oil production in December will remain at November's level. Elsewhere, spot gold is flat under USD 1,775/oz with some overnight resistance seen near that level, whilst the 200 DMA resides at 1,794/oz and the 21 DMA at 1,757.90/oz. Base metals are mixed, in-fitting with the cautious risk tone and swings in the Dollar, with 3M LME still under the USD 8,500/t mark but within a contained range.

06 Dec 2022 - 09:35- Research Sheet- Source: Newsquawk