EUROPEAN COMMODITIES UPDATE: Crude subdued and traders book some profits from Thursday’s gold rally

Analysis details (10:34)

WTI and Brent March contacts remain pressured by the broader risk tone following the selling seen on Wall Street and later APAC. Overnight, the downward momentum was interjected by source reports of further policy easing in China in a bid to spur growth, reports were then confirmed in European trade. Price action during the rest of the session will likely be dictated by the overall risk tone – barring any major developments on the geopolitical front. US Secretary of State Blinken, and Russian Foreign Minister Lavrov gear up for what could be a crucial meeting in terms of the “next move”. No breakthrough is expected from the talks (as per both sides) but an escalation cannot be discounted. A press briefing is expected around 12:00GMT later today. On that note, Ukrainian intelligence suggested that occupying forces secretly brought fuel, several tanks and artillery from Russia, whilst Moscow is looking for NATO forces to leave Bulgaria and Romania as an aspect of their security proposals, according to Ria. WTI and Brent trade on either side of USD 84/bbl and USD 87/bbl respectively, with losses of over USD 1.50/bbl apiece. Elsewhere, spot gold looks heavy as traders booked some profits from yesterday’s rally, while the yellow metal found support around the USD 1,830/oz mark which acted as resistance on the way up. LME copper re-tested USD 10k/t to the upside but failed to mount the psychological level as news flow remains light and markets look for the next macro catalyst.

21 Jan 2022 - 10:33- EnergyResearch Sheet- Source: Newsquawk