EUROPEAN COMMODITIES UPDATE: Contained crude trade amid further production pushback, metals benefit from the USD’s dip

Analysis details (10:45)

• A comparably contained session for the crude complex after yesterday’s pronounced OPEC+ related price action. To briefly recap, initial source reports via the WSJ stated that a production increase was on the table for the December 4th gathering. However, this has been subject to pronounced pushback from Saudi Arabia initially and subsequently from the UAE, Kuwait and Iraq. Rebuttals which prompted a marked bid in crude yesterday. Given newsflow has been limited in nature this morning amid a relatively thin schedule during a holiday-hampered week, the crude complex hasn’t strayed far and currently posts upside of circa 0.10%, with WTI Jan’23 holding just above USD 80/bbl.


• Spot gold and silver are firmer, with the yellow metal at session highs just below the USD 1750/oz mark as risk sentiment struggles to find firm direction and the USD continues to pullback, with the DXY now closer to 107.00 vs its move towards 108.00 overnight. For reference, the current spot gold peak of USD 1748/oz is shy of the 10-DMA at USD 1755/oz and still some way from the 200-DMA at USD 1801/oz Elsewhere, WorldSteel’s October update has global steel output unchanged YY at 147.3mln/T while China’s crude steel output has jumped 11% YY to 79.8mln/T; though, this increase is more modest than September’s 17.6% YY print.

22 Nov 2022 - 10:45- MetalsEU Research- Source: Newsquawk