EUROPEAN COMMODITIES UPDATE: Crude subdued but metals bide time ahead of US data

Analysis details (10:59)

WTI Sep and Brent Oct futures remain softer but off worse levels after the complex saw some impetus from the drift higher across stocks at the time, with the former just under USD 90/bbl and the latter sub-96/bbl following yesterday’s bearish Private Inventories. There have been several interesting headlines this morning for energy: Hungary's MOL said transport through the Friendship pipeline can resume, which follows reports yesterday that Russia suspended oil exports via the southern leg of the Druzhba pipeline amid transit payment issues. Furthermore, it is worth being aware of the situation regarding Germany’s drying Rhine River, with reports suggesting that it will be effectively impassable at a key point on August 12th – which will likely hinder large flows of diesel and coal at a time Russian gas flows are uncertain. There were also source reports via Reuters that Indian companies are using APAC currencies as payment for Russian coal imports in order to avoid sanctions, with the Yuan among the currencies becoming more popular. Elsewhere, the EIA STEO (August) stated that US 2022 crude output is seen rising 610k BPD to 11.86mln BPD (prev. +720k BPD forecast in June) and US 2023 crude output is seen rising 840k BPD to 12.7mln BPD (prev. +860k BPD) – with the OPEC MOMR and IEA OMR both due on Thursday. Over to metals, spot gold is flat below USD 1,800/oz with the 50 DMA today seen at 1,785.31/oz and the 10 DMA seen at 1,775/oz. Finally, LME metal futures are mixed and copper fell back under USD 8,000/t, with the level proving to be resistance in today’s session thus far. 

10 Aug 2022 - 10:59- Research Sheet- Source: Newsquawk