EUROPEAN COMMODITIES UPDATE: Crude curtailed as newsflow is (comparably) slower and sentiment improves

Analysis details (10:45)

Crude benchmarks are experiencing a pull-back this morning as newsflow is comparably slower than at this point yesterday, with the pull-back occurring in the context of the notable upside seen in yesterday’s session. Thus far, Brent has moved to a test of yesterday’s low at USD 95.80/bbl, though WTI remains someway from the comparable mark given the lack of settlement earlier in the week. Technically, further downside brings multiple recent figures into play alongside support highlighted by Futures Tech at USD 95.50/bbl and then little of note until USD 94.50/bbl. In terms of pertinent newsflow, following the announcements from multiple nations of sanctions on Russia there hasn’t been too much new from this perspective thus far, the session ahead looks to a 14:00GMT deadline for the EU Foreign Affairs Ministers to give their final approval to the full legal text of such sanctions; for clarity, yesterday they gave their approval to the associated fact sheet. Out of Ukraine, a state of emergency is to be implemented for the whole country ex-Donetsk/Luhansk, given those regions are under the effective control of separatists which recently signed cooperation agreements with Russia. From a Russian perspective, updates have been very light this morning and mainly comprising of officials responding to the announcement of sanctions with, for instance, a Russian ambassador saying western sanctions will have US citizens feeling full consequences of rising prices, according to Sputnik. Moving to metals, spot gold remains in relative proximity to USD 1900/oz but with a negative bias as sentiment is firmer this morning and, in-fitting with this, elevated yields are also impacting the metal. Elsewhere, LME Copper retain an underlying bid but remains below the 10k handle.

23 Feb 2022 - 10:45- Research Sheet- Source: Newsquawk