EUROPEAN COMMODITIES UPDATE: Crude attempts a recovery but metals are subdued by the firmer Buck

Analysis details (10:57)

WTI Jul and Brent Aug futures attempt to nurse some of yesterday’s losses which were triggered by WSJ source reports about a potential Russian exclusion from OPEC+ added to the fade from highs seen in wake of the EU's Russian sanction agreements; thus, resulting in lower settlements in both contracts. According to the article, exempting Russia from the quotas could pave the way for Saudi and the UAE, alongside other producers, to ramp up output in the face of Western pressure. Desks are sceptical and have been suggesting that the chances of such exclusion are low given the limited spare capacity and the political stability between OPEC and Russia. Nonetheless, source reports are likely to be released today as the JTC meeting gets underway, with tomorrow’s JMMC/OPEC+ poised to be slightly more interesting than originally expected. The JMMC and OPEC+ are set to commence at 13:00BST and 13:30BST respectively on Thursday. WTI trades around USD 116/bbl (vs low 114.58/bbl) whilst Brent resides just above 117/bbl (vs low 115.40/bbl). Elsewhere, spot gold is subdued by the rising firmer Dollar and meanders around the USD 1,830/oz mark awaiting the next catalyst. Base metals are mostly lower with LME copper back under the USD 9,500/t level, whilst LME nickel posts losses of some 2.5% at the time of writing.

01 Jun 2022 - 10:56- MetalsResearch Sheet- Source: Newsquawk