EUROPEAN COMMODITIES UPDATE: Crude and precious metals gain but base metals remain subdued

Crude Oil: WTI Dec +0.7%/Brent Jan +0.7%

• Modest gains across the crude complex this morning after a relatively flat settlement on Tuesday as the initial heightened Middle East rhetoric was later offset by the broad Buck bid.


• The private inventory data is delayed by a day owing to the Veterans Day federal holiday at the start of the week.


• BSEE stated 10.5% of oil production in the Gulf of Mexico shut-in due to Rafael (prev. 25.7%) and 3.2% of nat gas shut-in (prev. 13.1%) in the final production notice from BSEE in response to Rafael. There is an 80% chance of a cyclone formation near the Gulf of Mexico.


• Iran reportedly made plans to keep oil exports stable under a Trump presidency, according to local press Shana.


• Caspian Pipeline Consortium reduced oil supplies in Jan-Oct by some 1.2% Y/Y to 1.378mln BPD, according to Reuters sources; October output fell amid maintenance at Kazakhstan's Kashagan oilfield.


• Updates for the complex were quiet this morning as focus remains on US CPI at 13:30GMT.


• WTI Dec resides in a USD 67.96-68.86/bbl range while Brent Jan trades towards the upper end of 71.78-72.63/bbl.

Precious Metals: Gold +0.4%, Silver +0.7%, Palladium +0.3%

• Mild gains across precious metals as DXY pulls back from best levels (105.88-106.21 parameter) with newsflow light and with traders gearing up for US CPI.


• Geopolitical updates have been somewhat quiet this morning whilst a bid was seen overnight at the open of Shanghai commodities trade.


• Spot gold resides in a current USD 2,597.72-2,613.28/oz range and within yesterday's parameter (USD 2,589.72-2,627.23/oz).

Base Metals: 3M LME Copper -0.4%

• Copper futures hold a modest downward bias after lacking direction in APAC trade in a continuation of price action seen from the disappointing NPC Standing Committee announcement on Friday.


• Citi revised its 0-3M copper price target to USD 8,500/t (prev. USD 9,500/t); revise Q4 2024 average to USD 9,000/t (prev. USD 9,500/t).


• Australian lithium miners keep curtailing production due to weak prices and at least five lithium projects cut output this year, according to Bloomberg.


• China announced cuts to taxes for home purchases in fiscal support effective December 1st; MOF says tax cuts targets boosting the property market - Note this was flagged previously.


• 3M LME copper trades on either side of USD 9,100/t and resides in a current USD 9,097.50-9,192.50/t range.

13 Nov 2024 - 10:20- MetalsGeopolitical- Source: Newswquawk