EUROPEAN COMMODITIES UPDATE: Crude consolidates and metals are buoyed by a softer Buck

Analysis details (11:02)

WTI and Brent October contracts consolidated in the early hours following a session of gains yesterday, with the former meandering around USD 95/bbl and the latter just under USD 102/bbl. Aside from the overall risk tone, the focus is on the Iranian nuclear deal and its potential implications on the OPEC+ decision on September 5th, with growing noise surrounding a possible cut to the output quotas. In terms of the latest on Iran, it was reported that the US rejected all the additional conditions requested by Iran and urged the nation to lift any restrictions on international inspections, while it said that Iran should not be permitted to enrich uranium beyond a purity level of 4%, according to Al Arabiya. However, an Iranian professor cited by WSJ's Norman later said that the claim made by Al-Arabiya is false and that Iran has just started studying the response and will inform the coordinator afterwards. Europeans are in contact with the parties to the nuclear agreement and are looking to hold a new round of talks after receiving the US' response, according to Al Arabiya. US National Security Council’s Kirby said “We are closer now than we were just a couple of weeks ago… Gaps remain. We’re not there yet.” (full Newsquawk analysis available here). Over to metals, spot gold is edging higher in tandem with the decline in the Dollar, with the yellow metal approaching its 50 and 21 DMAs at USD 1,767.50/oz and USD 1,769.87 respectively. Finally, base metal futures are mostly firmer amid the softer Dollar, with 3M LME copper making its way further above USD 8,000/t.

25 Aug 2022 - 11:02- MetalsResearch Sheet- Source: Newsquawk