EUROPEAN COMMODITIES UPDATE: Crude flat whilst base metals pare back recent strength

WTI/Brent: U/C

• At the start of the European cash open, WTI and Brent were slightly on the backfoot, seemingly giving back some of the prior day’s advances which were sparked by heightened geopolitical tensions in the Middle East, via Syria; and with heightened optimism stemming from China’s Politburo also helping.


• As the morning progressed, the complex has gradually edged a little higher; overall newsflow for the complex has been very light. Overnight it was reported that Israeli forces are 20km from Damascus, via pro-Hezbollah Al Mayaden; this was later denied by an Israeli military spokesperson.


• WTI and Brent have traded within a USD 67.90-68.42/bbl and USD 71.71-72.24/bbl range respectively; the pair currently reside near the top end of their respective ranges. US-specific docket ahead is relatively quiet, but traders will keep an eye out for the EIA STEO at 17:00 GMT.

Gold: +0.2%

• Precious metals are ever so slightly on a firmer footing, despite a relatively firmer Dollar and amid a catalyst-thin session thus far.


• Spot gold currently trades towards the upper end of the prior day’s confines (USD 2,627.48-2,676.44/oz); for reference, today’s best is at 2,673.79/oz, just ahead of its 50 DMA at 2,668.08/oz.

HG Copper: -0.7%

• Base metals hold a strong negative bias, giving back some of the prior day’s gains, which was sparked by a positive China Politburo readout. The pressure seen within the complex is also in-fitting with broader losses in the equities complex in Europe thus far.


• HG Copper currently holds towards the bottom end of today’s 4.2310-4.2745/lb range. The red metal is currently trading around its 100 DMA at 4.2451/lb.

10 Dec 2024 - 09:55- MetalsGeopolitical- Source: Newsquawk