EUROPEAN COMMODITIES UPDATE: Contained trade in limited newsflow, IJC due

Analysis details (10:35)

• Crude benchmarks have spent the morning choppy but within particularly narrow parameters of sub USD 1.00/bbl with specific newsflow exceptionally light and markets generally quiet ahead of US IJC during Fed blackout.


• Specifically, WTI and Brent are holding at the lower end of USD 72.07-72.88/bbl and USD 76.44-77.29/bbl parameters which themselves are well within the ranges of yesterday and by extension the more pronounced movement of last week around OPEC+.


• Since the Wednesday EIA inventory release, the only notable crude-related development has been Bloomberg reporting a call between Russian President Putin and the Saudi Crown Prince. During which, they discussed OPEC+ cooperation; broader details on the call and specifics to the discussion around OPEC+ are light.


• Moving to metals, spot gold is firmer but remains capped by the USD 1950/oz level with the 10-DMA just above at USD 1954/oz. To the downside, the sessions trough dipped just below the 100-DMA at USD 1940/oz; current low, USD 1939/oz. Again, specific newsflow has been light with the yellow metal gleaning some support once again from the softer USD at this time, though it has yet to meaningfully recoup any of the downside induced on Wednesday as global rate expectations lifted following the BoC un-pausing.


• Base metals are more of the same, with the main benchmarks rangebound and around familiar levels and following suit to the broader risk tone, which itself is contained but with an incremental negative bias ahead of the arrival of US participants and after subdued APAC trade.

08 Jun 2023 - 10:34- MetalsEU Research- Source: Newsquawk