EUROPEAN COMMODITIES UPDATE: Crude diverges given the lack of settlement, metals modestly firmer

WTI/Brent: -0.6%/-0.9%

• Diverging, on account of the lack of settlement due to Thanksgiving. Specifics today have been somewhat light in European hours, with the docket ahead also limited.


• For the most part, we are awaiting updates on OPEC+ and the Lebanon ceasefire. On OPEC, reports yesterday implied that they are considering delaying bringing back production until Q1-2025, a report which is in-fitting with the views of numerous desks in the last days/weeks.


• On the Lebanon ceasefire, both sides were blaming each other for the reported breaches of it. More explicitly, Netanyahu said they should prepare for a strong war if the agreement is violated. Though, as it stands and despite the breaches, it appears the ceasefire is largely holding for now.


• Benchmarks towards the lower-end of c. USD 1/bbl parameters but, as has been the case throughout all of the week, remain in proximity to familiar ranges.

Gold: +1.0%

• In the green, benefitted this morning on the above punchy rhetoric and as the USD was under pressure.


• While the DXY has since lifted well off lows the yellow metal has managed to hold onto the bulk of overnight gains, only slipped slightly from a USD 2666/oz peak. Though, this leaves the benchmark with some way to go to a test of Monday’s USD 2721/oz WTD best.


• The Docket ahead is very light. As such, the precious metal will be awaiting any update to the geopolitical situation ahead of tomorrow's official PMI data from China in which the headline Manufacturing PMI is expected to show a further improvement.

3M LME Copper: +0.3%

• Firmer, benefitting from the constructive US risk tone as participants return to some degree following Thursday’s Thanksgiving holiday.


• However, action is limited overall with 3M LME Copper only just above the USD 9k mark after trading on either side of it multiple times throughout the week.


• As with gold, the docket ahead is light and we look to China’s PMI data over the weekend for the next catalyst.

29 Nov 2024 - 10:25- ForexData- Source: Newsquawk