EUROPEAN COMMODITIES UPDATE: Crude sees choppy trade whilst precious metals flatline with yesterday’s gains

Analysis details (10:43)

WTI and Brent March contracts are choppy intraday but prices remain at elevated levels in the grander scheme, with WTI and Brent on either side of USD 85.50/bbl and USD 88/bbl respectively, both within a USD 1.30 daily range. News flow for the complex has been light in early European hours, although the complex yesterday saw the MLK-delayed release of the weekly Private Inventory data, which printed a surprise build (Crude +1.4mln vs exp. -0.9mln), although the internals were mixed. Elsewhere, reports this morning suggested the Iraq-Turkey pipeline (which experienced an explosion earlier in the week) is back at its full capacity (around 150k BPD) vs half-capacity yesterday. On the geopolitical front, the US Secretary of State has left Ukraine for Berlin after reaffirming the US’ backing of Kyiv – but on this front, the Russian security demands may become a controversial topic which could lead to further escalations as the US refuses to adhere to Russia’s time pressure. Elsewhere, China’s military said a US warship entered waters near the Paracel Islands without permission, Chinese forces followed the US ship and warned it to leave – bearing in mind the sovereignty of the islands are disputed. Meanwhile, Iranian nuclear talks have yielded little progress. Elsewhere, spot gold and silver trade horizontally whilst retaining yesterday’s gains, with the former around USD 1,840/oz and the latter north of USD 24/oz. LME copper remains buoyant as stocks hold up and re-eyes USD 10,000/t to the upside.

20 Jan 2022 - 10:43- EnergyResearch Sheet- Source: Newsquawk

Subscribe Now to Newsquawk

Click here for a 1 week free trial

Newsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include: