EUROPEAN COMMODITIES UPDATE: Crude climbs as risk appetite recovers and JCPOA revival stalls

Analysis details (11:16)

WTI and Brent front month futures are on a firmer footing following the previous day’s declines in what has been a turbulent week for global energy markets; which continue to be rocked by Russia-Ukraine and its implications on crude supply/demand dynamics alongside the follow-through to the Iranian nuclear talks. The most recent upside could be attributed to commentary from EU Foreign Affairs Minister Borrell saying that "a pause in Vienna Talks is needed, due to external factors. A final text is essentially ready and on the table.", elaborating on this, separate diplomats cited by journalists suggested the "Russia's new demands are blocking the option to sign a deal". Crude markets remain very much at the whim of geopolitics. For reference, the weekly range thus far for Brent May stands at USD 105.60-139.13/bbl, whilst WTI April sees a current weekly parameter of USD 103.63-130.50/bbl; contracts are currently around 113/bbl and 110/bbl, respectively. Elsewhere, spot gold is relatively unreactive under USD 2,000/oz with little new to mention. In terms of base metals, Copper prices were subdued overnight amid the broad risk-averse mood across global markets, but LME prices have since recovered. Elsewhere, LME confirmed the nickel market will not open on Friday and has seen "limited" potential uptake to net off short positions. On the subject, Chinese tycoon Xiang Guangda said he wants to keep shorting nickel and told around 10 banks and brokers through which his Co. Tsingshan holds its positions that he still believes prices will fall, according to Bloomberg.

11 Mar 2022 - 11:16- EnergyResearch Sheet- Source: Newswires