EUROPEAN COMMODITIES UPDATE: Choppy trade in crude, but gold drifts higher and LME copper tops a key level
Analysis details (10:53)
WTI Sep and Brent Oct futures have drifted off best levels but hold onto a bulk of yesterday’s gains as both contracts settled higher by around USD 1.75/bbl apiece on Monday. Fresh catalysts for the complex remain light. In terms of the broader energy market, Norway has drawn up plans to ration electricity exports in a move which could stoke fears of energy shortages in Europe this winter – Norway is one of the largest electricity exporters in Europe via cables, namely to the UK, Germany, Netherlands, and Denmark. The issue arises from Norway’s hydropower reservoirs being at historically low levels. A UK-based consultancy, Aurora Energy Research, suggests that the UK may have to resort to coal-burning to make up for Norway’s shortfall. Back to oil, reports this morning suggested that Kazakhstan’s 300k BPD Kashagan oilfield’s output remains halted after a shut-down last Thursday amid a gas leak. WTI Sep trades just under USD 90/bbl and Brent Oct just sub-96/bbl. Ahead, the EIA STEO could provide some impetus after the European close. Over to metals, spot gold has been edging higher as the Buck softened, with the yellow metal eyeing USD 1,800/oz to the upside after topping its 50 DMA which today stands at USD 1,786.30/oz. Base metals are mixed with the breadth of the market narrow – LME copper reclaimed a footing above USD 8,000/t.
09 Aug 2022 - 10:53- MetalsResearch Sheet- Source: Newsquawk
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