EUROPEAN COMMODITIES UPDATE: Crude climbs as the USD eases pre-CPI
Analysis details (10:50)
- Upside for the crude space has occurred this morning seemingly without a fresh specific catalyst or driver, with the space perhaps taking advantage of a pre-CPI softening in the USD and the somewhat constructive European risk tone.
- Specifically, the morning’s upside has lifted WTI Feb’23 to a new WTD peak of USD 78.29/bbl, though this is someway shy of last week’s USD 81.50/bbl best. Similar action has been seen in Brent and for the benchmark Morgan Stanley writes that it expects prices to remain rangebound for the remainder of Q1, around the current USD 80-85/bb range. Thereafter, looks for Brent to average USD 90/bbl in Q2.
- Moving to metals, where spot gold is similarly taking advantage of the USD’s pullback but remains slightly shy of yesterday’s USD 1886/oz best thus far. While base metals are softer across the board, though off lows, given the mixed APAC and current risk tone and as specific drivers are slim pre-CPI. For the steel sector, the WSJ citing sources writes that China's customs officials in the Guangdong province reportedly received notice from the local gov't that they can clear Australian coal shipments; newsflow which follows and supports reports in the last few weeks that China is considering a partial end to the coal ban.
12 Jan 2023 - 10:40- Research Sheet- Source: Newsquawk
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