EUROPEAN COMMODITIES UPDATE: Crude underpinned while gold drifts higher and copper remains soft

Analysis details (11:00)

WTI Oct and Brent Nov futures are firmer on the day amid a softer Dollar and narrowing prospects of an imminent Iranian Nuclear deal. To recap recent developments, Iran sent a constructive response to US proposals aimed at reviving the nuclear deal in which Iran's response was aimed at finalising negotiations, according to state media cited by Reuters. However, it was later reported that the US said the latest Iran response regarding the nuclear deal is not constructive, according to AFP. European diplomats say the Iranian response to US comments on the draft JCPOA looks "negative and not reasonable", whilst another source added that the reply does "not look good at all”. It’s also worth being aware of reports of a large explosion at Iran’s largest oil refinery, the Abadan Refinery (429k BPD capacity), due to a technical failure. Aside from that, G7 ministers will today try to agree on a price cap scheme for Russian oil exports, this comes ahead of the EU energy meeting next Friday. Russia's Kremlin said Moscow will stop selling oil to countries which support price caps for Russian oil and will ship oil to countries which act in accordance with market rules. From a data perspective, the US jobs data will likely induce volatility in the oil complex. WTI trades on either side of USD 89/bbl (vs low 86.35/bbl) while its Brent counterpart dips back under USD 95/bbl (vs low 92.65/bbl). Over to metals, spot gold edges higher as the Dollar remains weak, with the yellow metal back on a 1,700/oz+ handle at the time of writing. Meanwhile, base metals are mixed LME copper softer around the USD 7,500/t. 

02 Sep 2022 - 11:00- MetalsGeopolitical- Source: Newsquawk