EUROPEAN COMMODITIES UPDATE: Crude consolidates while metals are broadly contained pre-PCE

Analysis details (10:25)

• WTI and Brent are firmer on the session with the April contracts residing around/just above Thursday’s peaks of USD 75.99/bbl and USD 82.77/bbl respectively; with the session’s parameters fairly narrow currently and well within the week’s USD 73.80-77.51/bbl and USD 80.40-84.30/bbl boundaries.


• Newsflow explicitly for the complex has been light with the benchmarks consolidating in a similar fashion to Thursday’s European morning before the sessions’ main events in the form of US PCE and BoE/Fed speak thereafter. However, we are attentive to updates on the Russia-Ukraine war as a number of international leaders have spoken already to mark the anniversary, with the US most recently announcing sanctions against a number of Russian Cos and an increase in tariffs on 100 Russian metals, minerals and chemical products worth circa. USD 2.8bln. Measures which are expected to be followed/joined by the 10th EU sanctions package against Russia, though as usual with EU events finalising the details is going down to the last minute.


• Both TTF and Henry Hub gas contracts are firmer thus far, following a settlement in excess of 6% for Henry Hub on Thursday which was spurred by renewed focus on potential cooler weather stateside and the weekly EIA data, where gas inventories fell 71Bcf.


• For metals, spot gold is essentially unchanged on the session as while the USD remains firmer it is yet to advance significantly from early European morning levels and as the traditional haven perhaps benefits a touch from the slight tilt in risk sentiment pre-PCE. Currently, the yellow metal is circa. USD 10/oz shy of Thursday’s USD 1833/oz peak which itself is just below the 10-DMA of USD 1836/oz. LME Copper is a touch softer in-line with the general risk tone and as we await an update from First Quantum after its Cobre mine stopped processing yesterday, a facility which accounts for 1.5% of global production.

24 Feb 2023 - 10:25- MetalsEU Research- Source: Newsquawk