EUROPEAN COMMODITIES UPDATE: Commodities are supported by a softer Buck and await the next catalyst

Analysis details (10:18)

• WTI and Brent front-month futures tilt firmer after an overnight session of sideways trade. The complex is seemingly supported by commentary from the Saudi's yesterday who reaffirmed their commitment to the OPEC+ precautionary measures – which comes against the backdrop of analyst expectations that Saudi may start unwinding its voluntary cuts as the year progresses. Elsewhere, the EIA STEO showed its 2023 world oil demand growth view was unchanged at a 1.76mln BPD increase and the 2024 growth forecast was cut by 30k BPD to a 1.61mln BPD increase. Meanwhile, the weekly Private Inventory data showed a larger-than-expected build in crude inventories, while the internals were bullish – traders are eyeing confirmation from the EIA later today. WTI Sep trades north of USD 83/bbl (vs low 82.67/bbl) while Brent Oct trades just under USD 86.50/bbl (vs low 85.91/bbl).


• Over to metals, spot gold sees marginal gains, albeit a function of the softer Dollar, with the yellow metal in a tight range under USD 1,930/oz and well within yesterday’s 1,923-1,938 range. Base metals are mixed amid the quiet news flow and tentative mood across the markets – 3M LME copper trades with modest gains but remains under the USD 8,500/t mark in a USD 8,487.50-347.50/t range.

09 Aug 2023 - 10:18- MetalsEU Research- Source: Newsquawk