EUROPEAN COMMODITIES UPDATE: Firm Dollar and flimsy risk tone keep commodities under pressure
Analysis details (09:50)
WTI and Brent futures have resumed the sell-off, in part amid the cautious risk tone/firmer Dollar, whilst the downside also coincided with Iran's Foreign Ministry spokesperson Kanaani suggesting JCPOA discussions have not been ruled out as a possibility. On the flip side, headlines on the Chinese COVID situation have been more constructive, with the cities of Chengdu and Dalian lifting lockdowns. Meanwhile, on the OPEC+ supply side, the output of the group in August fell 3.58mln bpd short of the quota, according to delegates cited by Argus. Elsewhere, Iraq’s Basrah Oil Company said oil exports returned to normal after being halted on Friday due to a terminal spillage, according to Reuters. Furthermore, Kuwaiti Petroleum Corporation’s CEO said Kuwait produces more than 2.8mln bpd and has plans to increase oil output whenever the market needs it, while Kuwait currently produces 650mln cubic feet of gas per day and plans to raise it to 1bln cubic feet. Currently, WTI Nov resides under USD 83.50/bbl, and Brent Nov trades around USD 90/bbl. Over to metals, spot gold has been under pressure as the Dollar gained traction, with the yellow metal still trading just above Friday’s USD 1,653.10/oz low. Finally, LME is offline today amid the UK Bank Holiday, whilst CME copper is softer amid the risk tone, whilst Bloomberg reported over the weekend that Chinese copper tycoon He Jinbi’s Maike Metals International is reportedly suffering a liquidity crisis that threatens his empire which handles one of every four tons of copper imported into China.
19 Sep 2022 - 09:50- MetalsResearch Sheet- Source: Newsquawk
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