EUROPEAN COMMODITIES UPDATE: Crude and industrial metals edge higher but gold remains contained
Analysis details (10:53)
WTI and Brent front-month futures are extending on yesterday’s climb, with the former around now back above USD 92.50/bbl (vs low 91.24/bbl) and the latter above USD 98/bbl (vs low 96.63/bbl). Risk assets were boosted on Wednesday by the US CPI metric with both contracts settling higher by over USD 1/bbl. The morning saw the release of the IEA’s Oil Market Report (OMR) which raised its 2022 estimate for oil demand growth by 380k BPD to 2.21mln BPD due to more gas-to-oil switching, whilst the release suggested that declines in Russian supply are more limited than previously forecast. For 2023, the IEA said demand is set to rise 2.1mln, surpassing pre-covid levels. This comes after the EIA’s Short Term Energy Outlook (STEO) on Tuesday which downgraded its 2022 world oil demand forecast, whilst upping its 2023 metric marginally to 2.06mln BPD. Reminder, the OPEC MOMR is due today as well. Elsewhere, Czech pipeline operator Mero exports oil flows to the nation to resume "soon", and expects flows via Druzhba to restart "tomorrow or the day after". Over to metals, spot gold trades flat around USD 1,789/oz after briefly topping USD 1,800/oz yesterday post-CPI, whilst to the downside, the 50 and 10 DMAs reside at USD 1,783/oz and USD 1,778/oz respectively. In terms of base metals, LME copper has gained a firmer footing above USD 8,000/t amid the softer Dollar, with LME nickel the current outperformer.
11 Aug 2022 - 10:53- MetalsData- Source: Newsquawk
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