EUROPEAN COMMODITIES UPDATE: Crude subdued while gold remains under USD 2k/oz and base metals see a mixed session
Analysis details (09:50)
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WTI June and Brent July futures are softer intraday and towards session lows at the time of writing amid a firmer Dollar and a downward bias to sentiment, with the former around USD 70.50/bbl (vs high 71.06/bbl) and the latter around USD 74.50/bbl (vs high 75.15/bbl). News flow for the complex has been light, but the bullish demand commentary from the IEA yesterday has been overshadowed by the broader risk tone alongside a surprise build (Crude +3.7mln exp. -0.9mln). Aside from that, complex-specific newsflow has been light this morning, although, on a geopolitical note, Iran's Economy Minister discussed oil and gas projects with Saudi Arabia, according to Bloomberg, as the two nations look to expand cooperation. Meanwhile, UBS lowered its year-end Brent forecast by USD 10/bbl to USD 95/bbl amid greater-than-expected supply. Ahead, participants will likely keep an eye on sentiment amid a slew of central bank speakers, whilst the EIA is poised to release its weekly inventory data later. - Spot gold tilts lower amid the firmer Dollar, which yesterday saw the yellow metal fall back under the USD 2,000/oz and accelerate losses towards a low of 1,985.50/oz, with today’s parameter currently between 1,986.25-93.12/oz, and 50 DMA seen at USD 1,981.67/oz today. Base metals meanwhile are mixed. 3M LME copper attempts to recoup some of its recent losses and clambered back above the USD 8,200/t from a USD 8,090/t intraday low at the time of writing.
17 May 2023 - 09:50- MetalsResearch Sheet- Source: Newsquawk
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