EUROPEAN COMMODITIES UPDATE: Crude continues to falter while base metals attempt a recovery

WTI/Brent: -0.8%/-0.9%

• Softer, continuing to falter after Thursday’s reports that the G7 could adjust the Russian energy price cap with pressure also stemming from the downbeat risk tone.


• Given this, WTI and Brent are down to lows of USD 68.72/bbl and USD 72.23/bbl respectively and are set to end the week with downside in excess of USD 1/bbl and USD 2/bbl respectively.


• Focus for the session ahead will, aside from updates to the risk tone around PCE/Fed speak, be on any further reporting around or commentary on potential changes to the price cap.


• Elsewhere, geopolitics remain in focus amid reports of progress in hostage talks, though any optimism from this was tempered by sources saying Israel is preparing for a new attack against the Houthis.

Dutch TTF +1.1%

• Modest gains thus far, though the benchmark is back below Thursday’s EUR 43.75/MWh high.


• Newsflow for the complex has featured the German Parliament passing its energy law, which will accommodate the waiver of internal gas storage levy at intra-EU border points and virtual trading hubs.


• Elsewhere, the US benchmark saw some upside on the remark from US President-elect Trump this morning that the EU needs to resolve its deficit with the US by purchasing the nation's oil and gas, otherwise "it is TARIFFS all the way!!!"

Gold: +0.5%

• Holding around the USD 2.6k/oz mark in a thin range with catalysts for the metal light. Thus far, XAU has been unable to derive any support from the downbeat risk tone as we await US data and then Fed speak.


• XAU is holding in proximity to the 100-DMA at USD 2606/oz with resistance above at USD 2646/oz (matches Wednesday’s peak) and then USD 2668/oz.

3M LME Copper: +0.4%

• Defying the risk tone and holding modestly in the green.


• Action which comes as the complex attempts to pare the pressure seen in recent sessions, though 3M LME Copper is yet to test/breach the USD 9k handle.


• In-fitting with other assets, the complex is awaiting further direction from the upcoming US risk events.

20 Dec 2024 - 09:55- ForexGeopolitical- Source: Newsquawk