EUROPEAN COMMODITIES UPDATE: deja vu for crude while metals succumb to yields & risk

Analysis details (10:50)

• A very similar story to Thursday for the crude benchmarks, which are attempting to reclaim the modest ground they gained in the first half of that session before broader sentiment was hit by a poor US auction and Chair Powell. Metals feature contained performance for spot gold, but with a slight negative bias as it eases back towards the WTD trough while base metals are pressured alongside the broader risk tone.


• As it stands, WTI Dec’23 and Brent Jan’23 are at the upper-end of USD 75.31-76.49/bbl and USD 79.79-80.86/bbl respectively; however, this leaves the benchmarks around USD 5/bbl shy of their WTD bests and almost USD 20/bbl off the early-October YTD peaks. Once again newsflow has been light for crude with geopolitics very much focused on short-term breaks in the Israel-Hamas conflict for localised aid/humanitarian/evacuation purposes.


• Spot gold is near the unchanged mark but resides towards the low end of relatively slim parameters thus far with continued yield upside weighing on the metal and bringing it closer to the USD 1943/oz WTD trough which printed on Thursday. As such, XAU is back within relative proximity to the 200- and 100-DMAs of USD 1934/oz and USD 1927/oz respectively. Elsewhere, base metals are pressured by the broader risk tone with downside of around 1% in some of the main contracts as it stands. Again, specific drivers are somewhat limited and as such the action is very much attributed to the broader risk tone rather than a specific fundamental; though, ongoing pressure in the Chinese market, with the region's bourses the APAC laggards, serves as another bearish factor for the space.

10 Nov 2023 - 10:50- Research Sheet- Source: Newsquawk