EUROPEAN COMMODITIES UPDATE: Commodities pressured by broader Dollar strength.

Analysis details (09:35)

WTI and Brent front-month futures are lower intraday as the rising Dollar and downbeat risk tone weights on the complex, with the former back under USD 89/bbl (89.67/bbl high) and the latter around USD 95/bbl (95.98/bbl high). That being said, the downside is somewhat cushioned by the large surprise drawdowns seen in crude stockpiles via API and EIA, whilst ING also suggests that “The drawdown in the SPR last week was the smallest since February. It would appear that we are starting to see larger draws in commercial crude oil inventories as the amount of crude released from the SPR is reduced.” Aside from that, fresh fundamentals for the complex have been light this session with price action likely to remain dictated by the Dollar and overall risk sentiment. As such, it remains a Dollar story for the metals complex with spot gold extending losses under USD 1,650/oz – with the yellow metal around USD 1,620/oz at the time of writing. LME metals are also softer across the board with 3M copper falling back under 7,500/t as sentiment remains sullied. 

03 Nov 2022 - 09:35- Research Sheet- Source: Newsquawk