EUROPEAN COMMODITIES UPDATE: Crude contained as participants digest OPEC+’s cut, attention turning to Friday’s NFP

Analysis details (10:40)

• Crude benchmarks are modestly firmer at present, extending marginally above yesterday’s best levels with fresh newsflow limited as participants digest yesterday’s OPEC+ action. Specifically, WTI and Brent are towards the mid-point of circa. USD 1/bbl ranges, though Brent Dec’22 briefly surpassed the 200-DMA at USD 94.11/bbl before moving back below the figure. Elsewhere, Saudi has set the November Arab Light OSP to Asia at Oman/Dubai +USD 5.85 (Unch.), N.W Europe at Ice Brent +USD 0.90/bbl and to the US at ASCI +USD 6.35/bbl, via Reuters citing a document.


• More broadly, sentiment is a touch softer as participants look for further clues around any Fed pivot, with Fed’s Bostic and Daly who are both 2024 voters making clear on Wednesday that the Fed will be moving into restrictive territory. The US-specific docket today features multiple Fed speakers which will of course be eyed for details, though the focal point for market direction in the near-term looks to Friday’s jobs release. Within Europe, attention remains on the broader energy market with Germany’s regulator once again cautioning that gas usage was too high and that savings need to be made to avoid a gas emergency.


• Softer sentiment which has led to some modest USD upside throughout the morning, though some way shy of recent peaks; nonetheless, both precious and base metals have lost some shine with spot gold back to the USD 1710/oz mark and once again capped by the 50-DMA at USD 1722/oz. On the commodity market more broadly, RBC highlights that while total AUM decreased in September underlying inflows have materialised and thus the space can still, in their view, hold onto its YTD average gains YY.

06 Oct 2022 - 10:40- MetalsResearch Sheet- Source: Newsquawk