EUROPEAN COMMODITIES UPDATE: Comparably contained trade ahead of key risk events
Analysis details (10:50)
- Overall, the crude benchmarks have been relatively steady throughout the European morning posting upside in excess of 1.0% and remain towards the top-end of yesterday’s parameters, though have drifted from the current sessions’ initial peaks. Action which, as was the case on Monday, places the benchmarks well within recent parameters markets await the commencement of the week’s main risk events, which begins with US CPI today.
- Specifically for the crude complex, newsflow has been fairly light though the same cannot be said for gas-related updates. Thus far, we have heard from EU Energy Commissioner Simson, who acknowledged the differing views between nations on a gas cap and urged ambassadors to negotiate and compromise to attain a deal. Subsequently, Italian PM Meloni says the Commission’s proposal remains inadequate and a majority of member states support a dynamic price cap. As a reminder, the Commission proposed a cap of EUR 275/MWh, well above the initial EUR 220/MWh compromise and the even lower levels put forward by various nations. While ministers are attempting to agree a deal today, if this is not the case then a leaders discussion on Thursday will follow before Energy Ministers meeting next week prior to the holiday break.
- For metals, spot gold and silver are modestly firmer despite the choppy, but ultimately modestly constructive, risk tone. Though, the yellow metal is capped by USD 1790/oz and the 200-DMA a dollar below, and as such has been unable to approach Monday’s USD 1795/oz peak. Elsewhere, base metals are mixed overall given the broader choppy action, but have eased from best following Bloomberg reports that China’s December 15th economic meeting has been postponed due to COVID cases in Beijing.
13 Dec 2022 - 10:50- MetalsData- Source: Newsquawk
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