EUROPEAN COMMODITIES UPDATE: Commodities conform to broader sentiment ahead of key risk events

Analysis details (10:39)

WTI and Brent are pressured in-fitting with the broader equity tone post-Meta; however, the benchmarks remain just within the troughs of yesterday’s sessions at USD 87.10/bbl and USD 88.28/bbl respectively. Newsflow explicitly for the complex has been fairly quiet with geopolitics remaining the focal point, though we are cognizant of reports that the Trinity Spirit, an oil production ship with 2mln bbls capacity has exploded near Nigeria – currently unclear what quantity of oil was on board. Elsewhere, Shell reported in the pre-market and they are expecting Q1 2022 total upstream production at 2-2.2mln BOEPD vs Q4’s 2.16mln figure, in their earnings they noted that utilisation and margins were impacted by ongoing divestments, Scotford turnaround and storm impacts. In the metals space the price-picture is much the same for spot gold and silver, as the yellow metal continues to hold above USD 1800/oz and is encapsulated by a cluster of DMAs between USD 1795-1815/oz. For base metals, LME copper is softer given the aforementioned risk tone but remains in familiar levels amid the absence of Chinese participants for the marketplace given the New Year celebration, though participants in Hong Kong will return for Friday’s session.

03 Feb 2022 - 10:35- MetalsResearch Sheet- Source: Newsquawk