EUROPEAN COMMODITIES UPDATE: Choppy but sideways trade in crude, while metals gain across the board

Analysis details (09:25)

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  WTI and Brent futures are relatively flat on either side of the unchanged mark after both July contracts settled lower by over USD 2/bbl apiece. The downside yesterday was due to a concoction of weak German GDP data – which underscored a winter recession – whilst commentary from Russian Deputy PM Novak only added fuel to the losses. As a reminder, Novak yesterday suggested he does not see any new steps at the OPEC+ June 4th meeting, whilst he later said Russia and OPEC+ partners will decide on what is best for the oil market; OPEC+ can decide at the June meeting if necessary. Newsflow for the complex this morning has been light, with WTI just under USD 72/bbl while Brent oscillates around USD 76/bbl.


• Elsewhere, spot gold has firmed in the European morning as the DXY pulled back, while the yellow metal also found support near its 100 DMA (USD 1,934.86/oz) in APAC hours. Price action today could be dictated by broader risk ahead of the US PCE metrics. Base metals are firmer across the board following the losses seen throughout the majority of this week, with Dalian iron ore rising some 4% at one point, whilst 3M LME copper reclaimed USD 8,000/t+ status and briefly topped USD 8,100/t.

26 May 2023 - 09:25- MetalsEU Research- Source: Newsquawk