EUROPEAN COMMODITIES UPDATE: Crude climbs modestly into OPEC+ this week, geopols remain in focus

WTI/Brent: +0.9%/+0.9%

• In the green, just off session highs of USD 68.81/bbl and USD 72.67/bbl respectively.


• While firmer, this leaves them over a USD 1/bbl shy of the best from Friday and by extension several dollars from last week’s opening levels which were in excess of USD 71/bbl and near USD 75/bbl respectively.


• Upside which comes after strong Chinese PMIs overnight and ahead of this week’s delayed OPEC+ gathering, current set for December 5th. A gathering which is expected to see the resumption of production delayed once again and likely until Q1-2025, with April touted by a handful of desks in recent days.


• Elsewhere, geopolitics remains in focus and is possibly assisting the current modest bullish action. The ceasefire around Lebanon is still in place, despite reported breaches, and reports indicate that a Gaza hostage deal is progressing. However, tensions have flared around Syria as opposition forces have taken control of much of Aleppo, with the Russian air force providing assistance to the gov’t in combating the rebels.

Gold: -0.6%

• Pressured despite uncertainty around France and geopolitical tensions with the USD firmer and stripping the yellow metal of any haven-allure it may have otherwise received.


• Direction will likely be drawn from the USD and as such focus is on the upcoming data and speaker docket.


• XAU peaked at USD 2656/oz peak, shy of last Wednesday’s USD 2658/oz high. Support comes into play at USD 2621/oz from Thursday before USD 2605/oz and then the figure.

3M LME Copper: -0.5%

• Softer, dented by USD strength and the tepid European risk tone and indications from US futures. Despite a mostly positive APAC handover on the back of data from China.


• China’s PMIs were largely better-than-expected, the headline Manufacturing PMI topped forecasts but Non-Manufacturing PMI disappointed, while Caixin Manufacturing PMI surpassed the most optimistic analyst expectations and printed its highest since June.


• Despite this, 3M LME Copper continues to slip below the USD 9k handle down to a USD 8910/z trough which is its weakest since November 14th when it printed at USD 8.86k.

02 Dec 2024 - 10:05- ForexData- Source: Newsquawk