EUROPEAN COMMODITIES UPDATE: Crude slips slightly while metals are largely gleaning support from further stimulus

Analysis details (10:40)

• Crude benchmarks are under modest pressure this morning with fresh drivers limited and the action perhaps a break in the least few sessions consolidation and a return to the last few weeks general direction. Elsewhere, spot gold is firmer as the tone remains tentative pre-FOMC speak while base metals are mixed given further Chinese support though a sizeable LME warehouse print seemingly weighs on Copper.


• In more detail, WTI and Brent are towards the lower-end of circa. USD 1.00/bbl parameters and erring towards the USD 70.00/bbl and USD 75.00/bbl marks respectively, action which keeps the benchmarks in recent ranges. Thus far, pertinent specifics have been somewhat light after commentary overnight from US’ Adeyemo on the Russian price cap and most recently limited remarks via Saudi Energy Minister Abdulaziz that the OPEC+ deal is achieving market stability.


• Moving to metals, spot gold is at the top-end of USD 1954-1964/oz parameters and hanging onto Thursday’s upside from marked USD weakness, irrespective of the DXY being firmer today – though this is perhaps capping any further upside for the yellow metal. Technical the 10- and 50-DMAs reside at USD 1955/oz and USD 1985/oz respectively. Base metals are generally firmer given further supportive measures out of China though this comes with the notable exception of Copper, which has seemingly plateaued around recent best levels and is slightly softer on the session. Pressure which is perhaps just an acknowledgement of recent upside and/or a function of a sizeable build in LME Copper stocks at the daily update of 11k. Albeit, Shanghai’s weekly summary had a decrease of 15.3k.

16 Jun 2023 - 10:41- MetalsResearch Sheet- Source: Newsquawk