EUROPEAN COMMODITIES UPDATE: Firmer Dollar weighs on commodities across the board
Analysis details (10:48)
WTI and Brent front month futures have been losing ground since the European cash open, with the losses exacerbated by Bloomberg reports that China is said to face the biggest oil demand shock since early 2020, according to sources. This is somewhat unsurprising given that the current outbreak is the most serious since the original Wuhan epidemic. Meanwhile, on the supply side, Germany remains reluctant to imminently shun Russian oil, whilst the Russian army said it aims to take full control over eastern and southern Ukraine. Nonetheless, the COVID situation in Shanghai could be the reason needed for OPEC+ members to keep their output pact unchanged at the upcoming meeting next month. Meanwhile, Morgan Stanley increased its Q3 and Q4 Brent crude forecasts by USD 10/bbl due to a greater-than-expected supply deficit driven by Russia and Iran. WTI June has dipped under USD 102/bbl (vs high 104.22/bbl) while its Brent counterpart resides just north of USD 106/bbl (vs high 108.76/bbl). Over to metals, spot gold has come under pressure as the DXY rises, with the yellow metal back under USD 1,950/oz from a USD 1,955/oz current intraday peak. Base metals are also lower across the board amid the firmer Buck, with LME tin and zinc posting shallower losses vs copper, aluminium, nickel and lead.
22 Apr 2022 - 10:47- MetalsResearch Sheet- Source: Newsquawk
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