EUROPEAN COMMODITIES UPDATE: Comparably contained trade with crude currently set to end the week modestly firmer

Analysis details (10:40)

WTI and Brent are currently set to end the week with gains in excess of USD 1.00/bbl overall, though the benchmarks reside towards the mid-point of the over USD 11.00/bbl range for the week. Newsflow on Friday morning has been comparably limited, both generally and for crude-specifics, on the latter we are cognisant of commentary from the Russian Deputy PM Novak though thus far he hasn’t added much to his remarks earlier in the week. However, his commentary on gas is more pertinent; remarking that gas supplies to France may have been disrupted due to local market shortages. Language that follows earlier reports from the French operator GRTgaz that inbound flows into France from Germany halted, due to reduced Russian deliveries. However, Germany’s BDEW insists that gas supplies are running stably despite the curtailment from Russia. On commodities broadly, JPMorgan foresees commodities returning as much as 10% this summer and 5% by year end, positing that crude could hit USD 150/bbl in the short-term; commentary comes amid a lack of an inventory buffer and as such JPM believes the entire complex remains a buy. Moving to metals, spot gold is rangebound in European hours having successfully surpassed the cluster of DMAs between USD 1843-1848/oz during Thursday’s blockbuster session. Albeit, the yellow metals is currently set to end the week with losses of around USD 7.00/oz. Elsewhere, the FT reports that Australia is invoking measures to prevent coal exports if required, in order to stop blackouts occurring.

17 Jun 2022 - 10:40- MetalsResearch Sheet- Source: Newsquawk