EUROPEAN COMMODITIES UPDATE: Crude continues slipping ahead of OPEC+, while metals trade at the whim of the Buck

Analysis details (09:23)

• 
  WTI and Brent July futures are both softer intraday amid cautious market sentiment as players return from the long weekend on month end. Crude prices were subdued overnight as the Dollar edged higher, but thereafter WTI and Brent saw another leg lower in which the former dipped under USD 72/bbl (vs high 73.55/bbl) while Bent approaching USD 76/bbl to the downside (vs high 77.57/bbl). Crude-specific newsflow has been light in recent trade but the OPEC+ confab approaches on June 4th. There are currently no firm expectations for what the group will opt to do, with the Saudi Energy Minister’s warning earlier this month, whilst Russian Deputy PM Novak guided no change. It could seemingly be an event influenced by pre-meeting crude price action – i.e. if prices continue declining heading into the meeting, there is more of a chance of the oil producers taking action. On that note, Iranian President Raisi told the OPEC Secretary General that he hopes oil producers can calm down the market and called for unity among its members, according to Reuters.


• Elsewhere, metals are moving at the whim of the Buck. Spot gold briefly dipped under its 100 DMA (1,936.27/oz) as DXY printed a session high above 104.50, although the yellow metal moved back above the level as the USD eased as the JPY strengthened ahead of the BoJ/MoF/FSA emergency meeting (from 09:30BST). Meanwhile, Platinum and Palladium prices are posting mild gains. Base metals remain mostly softer but off worst levels, LME copper fell to levels under USD 8,050/t before reclaiming USD 8,100/t+ status.

30 May 2023 - 09:23- Research Sheet- Source: Newsquawk