EUROPEAN COMMODITIES UPDATE: Commodities see broad-based gains amid a Dollar pullback; nickel and aluminium outperform on the LME

Analysis details (09:57)

The broader commodity market is benefitting from a pullback in the USD coupled with a broader risk appetite. WTI Nov and Brent Dec currently post gains of over USD 1/bbl apiece, with the former rising back above USD 82/bbl and the latter north of USD 88.50/bbl at the time of writing. The complex looks ahead to the OPEC+ meeting next week where noise has been growing surrounding a cut to output quotas – with Reuters sources earlier this week suggesting Russia could propose a cut of up to 1mln BPD to total quotas. The meeting will likely see a myriad of source reports beforehand testing the waters ahead of the decision-making meeting on the 5th of October. Until then, geopolitics will likely take centre stage later with Russian President Putin poised to officially annex the four Ukrainian regions that underwent the referendums to join Russia, whilst EU energy leaders meet to discuss energy measures for bloc energy security and to tame the inflationary effects on firms and households. Russian President Putin is poised to deliver a speech to lawmakers at around 13:00BST (Newsquawk primer available here), which could also coincide with the follow-up press conference from the EU Energy Ministers meeting (Newsquawk primer available here), whilst a NATO presser is scheduled for 17:00BST. Elsewhere, metals are buoyed by the recent pullback in the Dollar with spot gold edging above its 10 DMA (USD 1,656.72/oz) and towards the USD 1,680/oz mark which coincides with the yellow metal’s 21DMA (USD 1,680.56/oz) and 200WMA (USD 1,680.20/oz). Base metals are also firmer across the board with 3M LME copper back above the USD 7,500/t mark, whilst nickel and aluminium outperform on the exchange following spikes higher yesterday as sources suggested that the LME is mulling plans to ban Russian metals for delivery into exchange warehouses.

30 Sep 2022 - 09:58- Research Sheet- Source: Newsquawk