EUROPEAN COMMODITIES UPDATE: Crude pulls back and copper extends on gains, but gold stays rangebound

Analysis details (10:43)

WTI and Brent front month futures are softer after both contracts settled higher yesterday amid ongoing geopolitical tensions and supply woes out of Libya. Delving deeper into the Russia-Ukraine situation, the long weekend overall saw unconstructive headlines, with Russian Foreign Minister Lavrov recently stating that the next stage of the operation in Ukraine has begun. Over the weekend, Ukrainian President Zelensky said Russia has launched an assault to seize the eastern Donbas region, whilst diplomatic means are seemingly exhausted for now. Oil traders are also keeping an eye on China’s COVID situation after a Chinese Health Official said the domestic community transmission risk remains high. Additionally, China's Transport Ministry said they are prioritising the supply chain of Shanghai and its neighbouring areas and are paying great attention to ensuring there is smooth transport. Furthermore, Reuters reported that OPEC+ produced 1.45mln BPD under its March target, with Russia's production some 300k BPD below its quotas. Note, that the March production metrics via secondary sources were also released in the OPEC MOMR earlier this month. Elsewhere, spot gold trades on either side of USD 1,975/oz awaiting the next catalyst. LME copper is firmer and extends on yesterday's gains as protests threaten output at Peru's Las Bambas copper mine. Finally, iron ore futures in Shanghai fell amid reports that China's state planner said it is to cut crude steel output in 2022.

19 Apr 2022 - 10:43- MetalsResearch Sheet- Source: Newsquawk