EUROPEAN COMMODITIES UPDATE: Crude climbs as the USD declines; Russian actions/commentary in focus

Analysis details (10:45)

Crude benchmarks began the session on the back foot, amidst the generally cautious APAC mode where participants were digesting multiple updates including Russia/Ukraine, Nord Stream, China/US and reiterations from Biden. The cautious tone saw WTI and Brent slip to sub USD 96.00/bbl and USD 102.00/bbl respectively. However, since then a seemingly USD-driven move has lifted the benchmarks to back above USD 95.50/bbl and USD 104.00/bbl respectively. A move that occurred initially without clear fundamental driver but then modestly exacerbated alongside a more concerted risk move on the Russian Kremlin confirming that the repaired turbine will be re-installed soon. However, spokesperson Peskov cautioned that there is still equipment that needs to be repaired and Siemens Energy is aware of this requirement. Additionally, the Kremlin added that the Odessa port strikes were on military targets and will not affect grain exports; remarks that follow a series of strikes on the port over the weekend. An occurrence which prompted US Secretary of State Blinken to announce that Russia has breach its grain deal commitments by these attacks; a deal that was signed on Friday. From a Ukrainian perspective, thus far they have acknowledged the loss of a warship and anti-ship missiles. Given the strikes, ags. are bid this morning with US Wheat posting upside of over 3.5%. Moving to metals, spot gold has found support from the declining USD, lifting to USD 1733.70/oz, though upside is capped by the broader risk tone with the yellow metal yet to test Friday’s USD 1738.99/oz best. Elsewhere, copper and iron derived support overnight from reports of a China real-estate fund valued at up to USD 44bln, via Reuters.

25 Jul 2022 - 10:45- MetalsResearch Sheet- Source: Newsquawk