EUROPEAN COMMODITIES UPDATE: Crude consolidation after recent upside, spot gold meanders and base metals trade mixed
Analysis details (10:48)
WTI and Brent September contracts are softer intraday but consolidating in the grander scheme, with catalysts for the complex somewhat light this morning. Yesterday, commodities were boosted by a considerable decline in the Buck, although today’s Dollar weakness is failing to spur much upside. The known fundamental risks remain – China’s COVID situation, and Russia’s energy, whilst participants are also eyeing OPEC’s next policy as spare capacity is sparse and the Declaration of Cooperation (DoC) ends. WTI Sept resides just under USD 99/bbl and Brent Sept around USD 105/bbl, although the contracts are testing overnight lows at the time of writing. Gas prices are back on the rise today following declines yesterday – with reports suggesting the European Commission does not expect Nord Stream to restart, according to Reuters citing the WSJ. Annual pipeline maintenance on Nord Stream One ends on July 21st, but officials remain concerned in the run-up to this. Over to metals, spot gold holds above USD 1,700/oz with nothing too interesting to mention. Base metals are mixed with copper giving back some of yesterday’s gains, and 3M LME copper pulls back from the USD 7,500/t area. It is also worth noting that the EU set to backlist CEO of Russia's zinc and copper giant UMMC, according to a draft document – details remain light.
19 Jul 2022 - 10:48- MetalsResearch Sheet- Source: Newsquawk
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