EUROPEAN COMMODITIES UPDATE: Crude nurses losses as gold flatlines and industrial metals wane

Analysis details (10:53)

WTI and Brent front-month futures have clambered off worst levels and moved into the green in recent trade despite the subdued mood across markets. Geopolitics remains in the limelight for the complex as Russia/Ukrainian tensions show no signs of abating, whilst Iranian nuclear talks continue later today – although Tehran has downplayed hopes of an imminent deal. Meanwhile, the morning saw the IEA monthly oil market report which upped its 2022 demand forecast by 800k BPD and suggested OPEC+ effective spare capacity could fall to 2.5mln BPD (prev. 5.1mln BPD) by end-2022. Further, IEA suggested OPEC+ produced 900k BPD below the target in January. Note the OPEC release yesterday saw underproduction of 750k BPD (excluding Iran Libya and Venezuela), whilst the Argus survey showed underproduction of 800k BPD in January. Aside from that, energy markets will likely take their cue from the macro narrative and geopolitical updates. WTI Mar resides around USD 90.50/bbl (vs low 89.19/bbl) whilst Brent Apr trades just under 92/bbl (vs low 90.50/bbl). Elsewhere, spot gold is flat after falling back under the USD 1,830/oz resistance and falling to levels close to its 21 DMA at USD 1,819/oz. LME copper is subdued on the day amid the risk tone but remains around the USD 10,000/t mark. Dalian iron ore future meanwhile pared most of its intraday gains following reports that China is to crack down on iron ore price gouging

11 Feb 2022 - 10:53- MetalsResearch Sheet- Source: Newsquawk