EUROPEAN COMMODITIES UPDATE: Crude and metals all trend higher as the Buck’s retreat continues

Analysis details (10:56)

WTI and Brent front-month futures have been gaining in a recent trade with the complex underpinned by the developments regarding Russia-Ukraine alongside lower supplies from the North Sea amid maintenance. The demand side, however, continues to be weighed on by China's ongoing COVID situation alongside the prospect of recession across major economies in the coming quarters. All in all, there isn't much else to add for the crude complex ahead of next week's OPEC+ confab where producers are expected to stick to their output plans, which would see the June quota upped by 432k BPD under the agreement, also backed by recent sources. China's developments will likely be the reason for the producer to express caution with regard to Western desires for higher output quotas than planned. Further, ministers will likely have to address the group's over-compliance at some point as it produced 1.45mln BPD below its March target (with data showing declines in Russian output), although there is nothing to suggest that this issue will be picked up at this meeting. All-in-all, everything currently points to another smooth set of meetings on May 5th. WTI June resides above 106.50/bbl (vs low 104.50/bbl), whilst Brent July hovers around 109/bbl (vs a low of 106.60/bbl low). Elsewhere, spot gold has been rising in tandem with a pullback in the Buck but ahead of the US March PCE metric, with the spot metal back above USD 1,900/oz after briefly dipping below its 100 DMA yesterday. Overnight, base metals saw gains in Shanghai, with some also citing a demand front-load ahead of the Chinese Labour Day.

29 Apr 2022 - 10:55- MetalsResearch Sheet- Source: Newsquawk