EUROPEAN COMMODITIES UPDATE: Commodities consolidate amid light catalysts and looming risk events
Analysis details (09:41)
WTI Jul and Brent Aug see horizontal trade after the former settled just under USD 119.50/bbl whilst the latter settled above USD 120.50/bbl. The surprise build in Private Inventories (+1.85mln vs exp. -1.9mln), did little pressure prices but may have aided in capping gains, although the cautious risk tone could also cause longs to hesitate. In terms of the breakdown of the Private Inventories, the products saw larger-than-expected builds (Gasoline +1.82mln vs exp. +1.1mln, Distillates +3.38mln vs exp. +1.1mln), and ING posits “These product builds should offer some relief to the market in the very short term, given concerns over tightening product markets.” – markets now look ahead to the weekly EIA numbers. On the topic of EIA, the agency’s Short-Term Energy Outlook (STEO) whereby the US production forecast for 2022 was upgraded by 730k BPD (prev. +720k BPD) but the 2023 crude output is seen rising rise 1.05mln BPD to 12.97mln BPD (prev. +940k BPD) – the OPEC and IEA equivalents are due next week. Elsewhere, spot gold is finding trouble sustaining above USD 1,850/oz, although the yellow metal remains caged to a tight range. Base metal futures have adopted a softer bias amid the broader risk sentiment, but LME copper holds above USD 9,500/t. SGX iron meanwhile gained for a fifth session, with desks citing a demand push amid China’s reopening.
08 Jun 2022 - 09:41- MetalsResearch Sheet- Source: Newsquawk
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