EUROPEAN COMMODITIES UPDATE: Commodities reverse, risk improves and the Dollar drops

Analysis details (09:55)

WTI and Brent futures have trimmed losses seen in wake of China sticking to its COVID policy over the weekend, with WTI Dec back above USD 92/bbl (vs low 90.40/bbl) and Brent Jan back on a USD 98/bbl handle (vs low 96.50/bbl). The turnaround in crude prices coincided with an improvement in the risk tone and a fall in the Dollar amid reports that China’s Beijing City is set to improve COVID rules for people entering the city. This update follows the Chinese presser on Saturday whereby China’s health commission spokesman said China will not waver in preventing a COVID rebound and in the dynamic clearing of cases as soon as they emerge, while it did not make adjustments to anti-COVID protocols. Furthermore, airliner Ryanair also revised higher its passenger numbers for FY23 which bodes well from a jet-fuel demand perspective. Elsewhere, spot gold reversed earlier losses and climbed back above USD 1,675/oz after printing a base at around USD 1,665/oz earlier today. Base metals have also trimmed earlier losses amid the improvement in risk appetite and decline in the Buck, with 3M LME copper re-eyeing USD 8,000/t to the upside after forfeiting the level overnight.

07 Nov 2022 - 09:55- MetalsResearch Sheet- Source: Newsquawk