EUROPEAN COMMODITIES UPDATE: Choppy trade in crude whilst metals are pressured by the Buck

Analysis details (10:53)

WTI and Brent contracts have been choppy on the first trading day of the week, with WTI Oct oscillating on either side of USD 94/bbl and Brent Nov printing on either side of USD 100/bbl. The complex sees overarching opposing forces from slowing growth and the so-called OPEC put. Gains are capped by risk aversion while traders eye developments on the Iranian nuclear front as it could influence the OPEC+ decision slated for September – with recent rhetoric gearing up markets for a potential cut to quotas. Elsewhere, China’s COVID situation remains a grey cloud, with the district of Huaqiangbei in southern Shenzhen, China, ordered to shut down between Monday and Thursday to contain a new COVID outbreak, via SCMP - "The temporary closure of Huaqiangbei adds new risks to supply chains, as the hi-tech industry accounted for 20 per cent of Shenzhen’s gross domestic product in 2020, according to government data", cited by SCMP. Elsewhere, metals are pressured by the broader Dollar strength since Friday. Spot gold remains pressured under its 21 DMA (1,766/oz), 50 DMA (1,763/oz) and 10 DMA (1,749/oz). Copper in APAC markets declined, whilst the LME is closed today due to the UK bank holiday. 

29 Aug 2022 - 10:53- Research Sheet- Source: Newsquawk

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