EUROPEAN COMMODITIES UPDATE: Crude & copper climb amid risk, latter also aided by looming strikes

Analysis details (10:54)

Crude benchmarks are firmer this morning in-line with the general tone while newsflow for the sector remains focused on familiar themes. Currently, WTI and Brent are at the top-end of the sessions parameters; however, this still leaves us almost USD 15.00/bbl shy of last week’s best levels. Russian gas flows, or lack of, continue to draw market focus for the complex; most recently, Sweden has declared an “early warning” stage of gas supply preparedness for Western and Southern regions of the country. However, more constructively, the German regulator is not in a hurry to declare the highest emergency level yet and Engie reports no issues in supplying gas to its customers. Note, commentary on this from a Russian perspective has been relatively sparse in recent sessions, largely focusing around the Nord Stream 1 equipment that has been sent for maintenance. Continuing with gas, Italy’s Ecological Minister Cingolani says they are working on a price cap for gas amid increasing prices. Back to crude, Brent has hit a peak just over USD 116.00/bbl thus far, though is yet to convincingly surmount the handle, if it does Futurestech highlights resistance at USD 116.37/bbl, writing that this level needs to be retaken to say bulls can be backed once more. Moving to metals, spot gold is essentially unchanged on the session, though at best the yellow metal printed above USD 1842/oz and as such surpassed the 10-DMA and approached the 200- & 21-DMAs at USD 1843/oz and USD 1846/oz. Crossing to copper, Chile’s Federation of Copper Workers says it will commence national strike action on Wednesday, in protest of the closure of the Ventanas smelter, a unit that has been closed for maintenance. Amidst this, but also benefitting from broader risk sentiment, LME Copper has reclaimed the USD 9k mark.

21 Jun 2022 - 10:54- EnergyResearch Sheet- Source: Newsquawk