EUROPEAN COMMODITIES UPDATE: Crude and gold consolidate but base metals feel tailwinds from China further assisting its stressed property sector

Analysis details (09:05)

WTI Jan and Brent Feb futures are consolidating with modest gains after settling lower yesterday, but with the rebound only marginal owing to the flimsy risk appetite and after the bearish product components in the latest DoE inventory report. The crude complex has been largely moving inverse to the Dollar and in tandem with risk appetite amid a lack of newsflow and holiday-thinned volumes. Yesterday, US Energy Envoy Hochstein said the US still needs to replenish the SPR for the long-term and had created the environment for oil producers, while he added producers should increase production and he expects increases in oil output in H1 2023, according to Bloomberg. Aside from that, China will partake in a series of summits with the likes of Saudi Arabia, the GCC, and the Arab League over the rest of the week. WTI resides around USD 72.75/bbl (72.27-73.26/bbl range), whilst Brent trades around USD 77.75/bbl (77.25-78.36/bbl range). Elsewhere, spot gold is trading sideways above USD 1,775/oz amid yesterday’s Dollar-induced gains, with the 200 DMA at 1,792.70/oz and the 10 DMA at 1,772.38/oz today. Base metals are mostly firmer with LME copper back above USD 8,500/t, recent reports suggested China is mulling further property market easing measures at next week's economic meeting, according to Bloomberg sources. On an exchange level, LME reportedly attracted takeover interest from rivals, with ICE and CME among the parties potentially interested, according to Bloomberg.

08 Dec 2022 - 09:05- Research Sheet- Source: Newsquawk