EUROPEAN COMMODITIES UPDATE: Crude and gold consolidates while base metals trade mixed

Analysis details (10:54)

WTI Sept and Brent Oct futures trade with both contracts under the USD 100/bbl mark as the participants juggle a myriad of major factors, including the OPEC+ meeting, China’s growth target abandonment, and the compounded geopolitics of Russia-Ukraine and China-Taiwan. On the OPEC front, today sees the JTC meeting commencing at 12:00BST/07:00EDT, whereby no policy decision will be made, although the supply/demand forecasts will be watched ahead of the JMMC/OPEC+ meeting tomorrow, whereby most expect the group to continue with current output (preview available in the Newsquawk Research Suite). Reports overnight suggested that Chinese leaders said the GDP goal is guidance and not a hard target which does not provide much confidence in China's economy. Meanwhile, eyes today remain mostly on the China-Taiwan-US situation (analysis on the Newsquawk feed) for a possible escalation. Elsewhere, spot gold remains stable at around USD 1,775/oz, with the 50DMA to the upside seen around USD 1,793/oz. Elsewhere, base metals are mixed following downbeat trade in Chinese markets amid the withdrawal of China’s GDP guidance.

02 Aug 2022 - 10:54- Research Sheet- Source: Newsquawk