EUROPEAN COMMODITIES UPDATE: Industrial commodities feel broader pressure from risk; spot gold extends above 2k

Analysis details (10:15)

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  WTI May and Brent June futures have come off overnight high and trade relatively flat at the time of writing after both benchmarks settle modestly in the green yesterday. Price action this morning is seemingly a function of risk after futures traded sideways in APAC hours but with Chinese markets away on holiday, although prices overnight were underpinned by a larger-than-expected draw in private crude stockpiles (-4.3mln bbls vs exp. -2.3mln bbls). Following the OPEC cuts announced over the weekend, the White House yesterday said the US will continue to work with producers and other stakeholders to ensure energy markets remain stable and prices remain low for American consumers. News flow for the complex today has been somewhat light, although the EZ and UK Final PMIs highlighted that Europe likely missed a recession, whilst the UK looks to have returned to growth. WTI has dipped back under USD 81/bbl while Brent eyes USD 85/bbl to the downside. Price action today will likely be driven by sentiment as participants look ahead to the US ADP, US ISM, and the weekly EIA report. Sticking with energy, US Henry Hub and Dutch TTF prices trade modestly softer intraday at USD 2.09/MMBtu and EUR 46.255/MWh. As a reminder, the US yesterday said it will keep sending large supplies of LNG to EU ports, pledging at least 50bcm to Europe this year.


• Over to metals, spot gold edges higher, with price action relatively contained, but above the USD 2,000/oz mark following the move seen in wake of the US JOLTS data yesterday, with the yellow metal reaching an intraday high of around USD 2,028/oz before pulling back from best levels. Elsewhere, base metals are mostly lower amid the soured risk tone and slightly firmer Dollar, with 3M LME copper hovering around USD 8,700/t at the time of writing, having dipped to a USD 8,666/t intraday low.

05 Apr 2023 - 10:15- MetalsResearch Sheet- Source: Newsquawk