EUROPEAN COMMODITIES UPDATE: Gas heats up on updates out of Qatar and Russia

WTI/Brent: +0.3%/+0.3%

• Firmer to the tune of USD 0.20/bbl, taking impetus from the APAC/US risk tone and shrugging off the more tepid performance seen in Europe thus far.


• Action which has seen Brent eclipse Friday’s best by USD 0.10/bbl but the USD 73.38/bbl peak remains someway shy of USD 73.86 from last Thursday and then a handful of recent resistance points above USD 74.00/bbl.


• Geopolitical updates, while pertinent, didn’t move the dial over the weekend while other newsflow has been somewhat bearish as Libya’s Acacus and Sirte achieved their highest oil output since 2007 and flows through Russia’s Druzhba line recommenced.

Dutch TTF: +1.0%

• Initially softer, but only marginally and in a very thin range. Once again there is divergence with US NatGas which has been and continues to outperform.


• US markets benefitting from an interview in the FT where Qatar’s Energy Minister warned the EU that it will stop gas sales to the region if they are subject to a due-diligence related fine. The upper limit of such fines is 5% of a Co. annual revenue.


• Over the weekend, Slovakia’s Fico met with Russia’s Putin. Fico said Russia confirmed a readiness to continue supplying gas to the west and; however, Putin has since remarked that the situation is “complicated” and requires “further attention”.


• A remark which ignited a bid in Dutch TTF, lifting it well into the green and to a EUR 44.60/MWh peak.

Gold: +0.3%

• Marginally firmer, benefitting from the tepid European risk tone though with any real advance prohibited by the indications from US futures.


• At a USD 2633/oz peak, resistance comes into play at USD 2643/oz where the 21-DMA resides and coincides with the peak from last Wednesday.


• Docket ahead is fairly light aside from a handful of US data points.

3M LME Copper: +0.3%

• Firmer, continuing action from APAC trade which saw modest gains for the complex in-fitting with the broader risk tone.


• However, 3M LME Copper is still yet to comfortably/lastingly eclipse the USD 9k handle.

23 Dec 2024 - 10:00- ForexGeopolitical- Source: Newsquawk