EUROPEAN COMMODITIES UPDATE: Crude benchmarks inch higher in limited newsflow

Analysis details (10:30)

• A contained session for the crude complex, with the benchmarks within sub-USD 2/bbl parameters in limited newsflow. For much of the APAC session/European morning both WTI and Brent Feb'23 have been towards the mid-point of respective USD 75.80-76.59/bbl and USD 79.55-80.49/bbl initial ranges. However, a modest extension of this occurred in proximity to commentary from the Russian Defence Ministry that oil tanks were destroyed in Kharvic, Ukraine - newsflow which saw an eclipse of the above levels to USD 77.26/bbl and USD 81.11/bbl respective peaks. Regarding the Russian commentary, it is unclear if this is in reference to additional oil tanks being destroyed or if it refers to an attack reported on December 20th.


• We are on the lookout for any fresh updates from the Keystone Pipeline operator TC Energy after Bloomberg citing sources reported a delay to the full restart of the 622k BPD line until the 28th/29th December vs 20th December originally targeted. As it stands, no explanation has been reported for the postponement.


• Last night's private inventory report showed a larger-than-expected headline draw of 3.1mln (exp. -1.7mln), while the internals posted larger-than-expected builds. Later today, the EIA release is expected to print a 1.65mln headline draw, compared to the prior build which was in excess of 10mln; in fitting with the Private release, the accompanying components are forecast as modest builds.


• Moving to metals, spot gold is little changed overall but has experienced some very modest pressure as the DXY continues to scramble for a foothold at 104.00 and broader equity/crude upside advances somewhat from initial levels.

21 Dec 2022 - 10:25- Research Sheet- Source: Newsquawk