EUROPEAN COMMODITIES UPDATE: Crude retains geopolitical premia while spot gold is capped by USD 1930/oz

Analysis details (10:30)

WTI and Brent remain unphased by the pressure seen in the equity space thus far, with the benchmarks posting gains of circa USD 1.00/bbl. Albeit, once again, WTI and Brent lie within relatively narrow parameters of USD 2.00-3.00/bbl at this point in time. The resilience of crude comes as the Ukraine-Russia situation has not seen any substantial developments, in either direction, though geopolitical premia is being stoked amid ongoing announcements of or about further sanctions on Russia and associated individuals. In the immediacy, the US is expected to announce new sanctions on Wednesday looking to force Russia to choose between a default or draining its remaining USD reserves, according to Reuters. Other impulses include reports from Ukraine’s gas operator that three main gas pipelines have suffered damage during the conflict and two distribution stations have been destroyed. Technically, Futures Tech looks towards USD 111.09/bbl in Brent as a key resistance mark to the upside, as a recent failure to retain it served as a dampener on recent bullishness. Moving to metals, spot gold/silver are modestly firmer amid the general risk tone and as the USD continues to pull-back modestly from recent gains. Currently, upside in the yellow metal is capped by the USD 1930/oz mark. Elsewhere, LME Copper is hindered in a continuation of APAC action amid the broader risk tone.

06 Apr 2022 - 10:29- MetalsGeopolitical- Source: Newsquawk