EUROPEAN COMMODITIES UPDATE: Mid-week turnaround as markets brace for a myriad of upcoming risks

Analysis details (11:04)

WTI and Brent front-month futures have been coming off best levels during the European session amid seemingly constructive, or less destructive, headlines out of Eastern Europe. Firstly, humanitarian corridors have been opened with no breaches reported yet, whilst the Russian and Ukrainian Foreign Ministers are still poised to meet tomorrow. Further, the Foreign Ministry spokesperson said operations in Ukraine do not include overthrowing the government. Reports via AFP (citing Russia) suggested: "some progress" has been made in discussions with Ukraine. However, it is worth being aware of Fox News reports that the city of Kyiv could see the Russian military within the next 48-72 hours. In terms of Iranian nuclear talks, the Iranian representative is on the way to Vienna to continue talks. A source close to the Iranian negotiating team in Vienna told Iran’s state media on Wednesday that a “good” deal was on the table, but that the delay in the political decision making in Washington is hindering the process, according to Rudaw News. Elsewhere, last night’s US Private Inventories printed a surprise build, with eyes on confirmation from the EIA today. WTI April resides just under USD 121.50/bbl (high 126.84/bbl) whilst Brent May trades sub-127/bbl (vs high 131.61/bbl). Over to metals, spot gold has been unwinding some risk premium but holds its head above USD 2,000/oz (vs high 2,059/oz). Finally, LME nickel has not traded today following yesterday’s historical short squeeze, whilst Shanghai Futures Exchange also suspended some nickel futures contract trading for one day following an overnight session on continuous “limit-ups”.

09 Mar 2022 - 11:03- MetalsResearch Sheet- Source: Newswires