EUROPEAN COMMODITIES UPDATE: Commodities back on the rise as tensions with Russia remain at highs ahead of the NATO confab

Analysis details (10:28)

WTI and Brent May 2022 futures continue to grind higher, perhaps drawing some geopolitical premia amid punchy rhetoric from the Russian Foreign Minister, which sullied broader sentiment ahead of the European Council/NATO summit tomorrow. Equity futures drifted lower as Lavrov suggested that NATO is still expanding eastward and that Ukraine’s EU membership threatens Russia’s interests. As a reminder, Ukraine abandoned its bid to join NATO, but its application to join the EU has been accelerated. That being said, Russian Deputy PM Novak and defacto energy minister said Moscow is in talks with Asian partners regarding increasing oil exports if required whilst indicating that there is a shortage of 1mln BPD of oil on global markets. WTI resides north of USD 111/bbl (vs low 108.38/bbl whilst Brent mounted USD 118/bbl in recent trade. Over in the metals complex, spot gold has seen a recovery amid haven flows and prices have moved back towards the USD 1,930/oz resistance area. Finally, LME nickel briefly hit limit up as prices rose 15%, moving back above USD 30k/t following the recent short squeeze.

23 Mar 2022 - 10:27- MetalsResearch Sheet- Source: Newsquawk