EUROPEAN COMMODITIES UPDATE: Crude choppy pre-OPEC but metals boosted post-Powell

Analysis details (10:07)

WTI Jan and Brent Feb futures are somewhat choppy with the initial upside paring back in recent trade despite a distinct lack of news flow and a steady Dollar at the time. WTI receded from a peak of around USD 81.20/bbl back towards USD 80.50/bbl whilst Brent fell from levels north of USD 87.50/bbl to back under USD 87.00/bbl. Oil markets remain cognizant of China’s COVID policy, in which officials adopted a softer stance to the draconian measures as social unrest flares up in several large Chinese cities. In terms of OPEC+, market expectations are leaning more towards a rollover of current policy - RBC believes OPEC+ will likely opt for deeper OPEC cuts of 500k BPD to 1mln BPD if Brent is poised to break below USD 80/bbl and "all signs point to a de minimis Russian supply disruption in December". Elsewhere, spot gold benefits from the decline in the Dollar as the yellow metal extends on gains above USD 1,775/oz as it sets its sight on the 200 DMA at USD 1,796.07/oz ahead of USD 1,800/oz. Base metals are firmer across the board following the recent China optimism and Dollar-induced boost, with 3M LME copper briefly topping the USD 8,300/t mark.

01 Dec 2022 - 10:08- Research Sheet- Source: Newsquawk