EUROPEAN COMMODITIES UPDATE: Modest bid for crude benchmarks amid thin volumes, but well within recent parameters

Analysis details (10:05)

• WTI and Brent Jan’23 have exhibited grinding upside throughout the European morning, upside that has occurred despite a modest revival in the DXY’s fortunes to back above 106.00 and further China COVID woes. On the latter, Beijing City reported 1,119 (prev. 863) COVID infections on November 24th, while Nanjing City is set to introduce mass testing for five days; however, health officials state that Guangzhou will not be placed into lockdown, but the next week is key. Currently, WTI is around the USD 79.62/bbl session peak, a level which is notably shy of the circa. USD 82.60/bbl WTD peak set on Monday.


• COVID aside, the focus point for commodities is the EU’s discussions on the gas and oil price caps, talks which reportedly stalled yesterday amid disagreements over the level. However, talks on the oil cap are expected to resume later today, according to WSJ’s Norman. Looking ahead, aside from any ad hoc cap developments and potential updates ahead of December’s OPEC+ the session is devoid of scheduled events. For reference, overnight the Saudi and Iraqi Energy Ministers stressed the importance of working within the OPEC+ framework and reiterated further measures to ensure the stability of the oil market if necessary.


• Moving to metals, spot gold and silver have succumbed to the mentioned USD upside, with the yellow metal probing USD 1750/oz to the downside while base metals are incrementally firmer despite the USD and COVID given the latest stimulus action out of China.

25 Nov 2022 - 10:01- Research Sheet- Source: Newsquawk