EUROPEAN COMMODITIES UPDATE: Crude trades sideways while metals are pressured across the board by the Buck

Analysis details (09:45)

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  WTI and Brent futures are choppy but have been trading horizontally above USD 78.50 and USD 82.50/bbl respectively since around the settlement, which saw the June contract settle higher by USD 0.89/bbl and USD 1.07/bbl respectively. Newsflow for the sector remains quiet, and prices are holding up considering the downbeat risk tone and firmer Dollar. The Russian Deputy Energy Minister was on the wires today and suggested volatility and uncertainty in global energy markets will increase due to underinvestment, while Russia hopes to share some results of the new energy strategy in the next few months. Geopolitical headlines have been abundant. Deputy Chairman of the Russian Security Council said "Our competitors should not underestimate the possibility of our use of nuclear weapons", whilst Tass reported that Russia may withdraw from the treaty banning intermediate and shorter-range nuclear missiles, according to a foreign ministry official. Elsewhere, Japan said it detected China's Shandong carrier and six vessels passing through waters around 360km South of Yonaguni Island on Monday evening - Yonaguni Island is the westernmost inhabited island of Japan – with Taiwan the closest country. 


• Ahead, participants will be eyeing the weekly Private Inventory data. It’s also worth noting that next month will not see an OPEC+ JMMC meeting after the format was changed from monthly to once every two months. Nat Gas markets meanwhile remain under pressure, with Russian Deputy PM Novak recently reiterating that Russia plans to increase its nat gas exports to China by 50% this year.


• Spot gold remains sub-USD 2,000/oz and attempted to top the level before the Chinese cash opened last night, with upside capped by the firmer dollar – the yellow metal resides around recent ranges after finding resistance near its 10 DMA (USD 2,001.47/oz) and falling under its 21 DMA (USD 1,994.41/oz). Industrial metals are lower across the board as the greenback and soured risk tone pressure the complex – 3M LME copper declines further below USD 8,750/t to levels closer to USD 8,600/t.

25 Apr 2023 - 09:45- MetalsResearch Sheet- Source: Newsquawk