EUROPEAN COMMODITIES UPDATE: Gold wanes as crude posts modest gains, and base metals see mixed trade

Analysis details (10:46)

WTI and Brent June contracts are mildly firmer in what is very much a fluid environment for the complex. The former hovers just north USD 103/bbl (102-104.32 intraday range) whilst Brent trades around USD 108/bbl (106.80-109.12 intraday range). In terms of current moving pieces, following Russia’s ICBM test yesterday, the Russian Defense Ministry has claimed that it has captured the strategic city of Mariupol, although desks are still awaiting confirmation from the Ukrainian or Western sides. Meanwhile, recent reports suggested China's State Energy firms are in discussions for Shell's Russian LNG stake, according to Bloomberg sources. It is also worth looking at this from a geopolitical lens as China integrates itself more with the Russian energy sector as the West eases off Russian dependence. Elsewhere, China’s COVID headwinds are still in vogue, with overnight reports suggesting that Shanghai will maintain tough restrictions to curb infections. Aside from that, traders will be on the lookout for any macro impulses in the upcoming appearances by Fed Chair Powell, BoE Governor Bailey and ECB President Lagarde. Over to metals, spot gold breached support at the psychological USD 1,950/oz mark, which has held up since the European cash close yesterday. The metal also dipped under its 21 DMA at USD 1,947.06/oz; 50 DMA resides at USD 1,936.05/oz. Base metal futures have been relatively mixed with nothing too interesting to mention, but copper traders should be cognizant of reports that Peru is to declare a state of emergency to restore copper output at the Cuajone mine, which was halted by protests in late February, according to Reuters.

21 Apr 2022 - 10:46- EnergyResearch Sheet- Source: Newsquawk