EUROPEAN COMMODITIES UPDATE: Crude clipped in a broader SNB-induced move

Analysis details (10:55)

Crude benchmarks are hampered in-fitting with the global tone as markets digest the shock 50bp hike from the SNB. Currently, WTI and Brent are lower by just shy of USD 1.00/bbl and holding just above yesterday’s troughs. Crude specific newsflow has been somewhat limited, but does include commentary from the Russian Deputy PM Novak after meeting his Saudi counterpart; Novak remarked that Russia could increase oil output in July and their production is being restored. Elsewhere, attention remains on the US’ multifaceted approach to increasing supply, though updates have been limited in European hours. Crude aside, Nord Stream 1 draws renewed focus after the recent reduction in its capacity and Ria, citing an official, providing the latest update that in the event further turbine issues are experienced, the pipeline could be suspended. For the session ahead, the macro tone is likely to continue dictating price action though participants will be cognisant to updates on the above themes and the COVID situation in China/Hong Kong. On the latter, Thursday is the second consecutive day that cases have been above 1k, a figure it has not been at since early-April. Moving to metals, spot gold is relatively contained in a sub-USD 10/oz range in-spite of the pronounced price action in the USD and Fixed Income spaces; with any upside for the metal capped again by a cluster of DMAs between USD 1840-46/oz. Finally, attention is on an FT report that China is moving to consolidate domestic iron ore imports via a centrally controlled purchaser, due to reported frustrations with large price swings given Australian dominance.

16 Jun 2022 - 10:55- MetalsResearch Sheet- Source: Newsquawk