EUROPEAN COMMODITIES UPDATE: Crude remains choppy, gold found support and copper continues climbing

Analysis details (10:56)

WTI and Brent front month futures are choppy within relatively tight ranges and trades keep one eye on geopolitics and another on US inflation later today. In terms of the updates on the Russian/Ukraine situation, Russia is poised to commence military drills with Belarus and in the Black Sea – and Ukraine is set to reciprocate with their drills. Diplomatic efforts will likely not be fruitful until Russia is satisfied with its security demands. Russian Foreign Minister Lavrov also suggests the EU is planning a collective response to Russian security proposals, adding that if this is the case, talks "will fail". This punchy rhetoric aided crude prices to find a floor for the time being. WTI March trades on either side of USD 90/bbl and Brent April on each side of USD 91.50/bbl – with both benchmarks within a ~USD 1/bbl intraday range. Elsewhere, spot gold trades sideways and confirmed support at USD 1,830/oz – which acted as resistance on the way up. LME copper meanwhile extends gains above USD 10k/t with the red metal above USD 10,250/t at the time of writing. Overnight also saw gains in APAC copper and aluminium, whilst coal prices were pressured amid China’s recent jawboning. Meanwhile, regarding steel and iron, multinational steel manufacturing corporation ArcelorMittal sees a less upbeat view on FY global steel consumption expectation.

10 Feb 2022 - 10:56- MetalsResearch Sheet- Source: Newsquawk