EUROPEAN COMMODITIES UPDATE: Crude and gold buoyed by Putin, but base metals hit by the Buck
Analysis details (10:05)
The crude complex has been propped up by the escalation in rhetoric from Russia, whereby President Putin announced that partial mobilisation will begin today and warned “All means of destruction, including nuclear ones” are on the table to defend Russia. Shortly after his speech, the crude prices caught a bid amid the intensifying tensions and prospect of a potential war with the West. This has been the most noteworthy development this morning, with WTI Nov rising from around USD 84/bbl to a high of USD 86.68/bbl before trimming gains, whilst Brent Nov rose from around USD 91/bbl to levels near USD 93.50/bbl before pulling back, potentially on profit-taking and ahead of risk events. As a side note, BP said it is working with local fire crews as they respond to an active fire at Husky Toledo Refinery (160k BPD), the refinery has been safely shut down. Elsewhere, spot gold saw gains despite the firmer Dollar, and on haven demand following the rhetoric out of Russia this morning, spot gold rose from around USD 1,664/oz to a current high of USD 1,676/oz, but remains within the range seen in over the last three sessions – in which USD 1,679/oz has established itself as a formidable resistance level in proximity to the prior 2022 low of 1,680.99/oz. Meanwhile, LME copper has given up its earlier gains and threatens a test of USD 7,700/t to the downside at the time of writing amid the cautious risk tone and after the DXY hit a fresh two-decade peak.
21 Sep 2022 - 10:05- MetalsResearch Sheet- Source: Newsquawk
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