EUROPEAN COMMODITIES UPDATE: More morning consolidation in crude while Gold eyes USD 1,800/oz and base metals see a mixed picture

Analysis details (10:20)

WTI Jan and Brent Feb remain firmer intraday but in the grander scheme are consolidating with modest gains, the former around USD 72.50/bbl (vs low 71.32/bbl), and the latter just above the USD 77/bbl mark (vs low 75.95/bbl) at the time of writing. News flow for the complex has been light this morning with volumes in the front-month contracts anaemic. The session thus far has seen Saudi Arabia and China reaffirm the significance of stable global oil markets in a joint statement – as expected. Elsewhere, China continues meeting with leaders from the middle-east, thus participants could keep an eye on that alongside the broader market mood. Spot gold remains under USD 1,800/oz after hitting a current high of USD 1,797.75/oz and climbing back above its 200 DMA (1,791.89) after closing below the line yesterday. Base metals meanwhile were boosted overnight by the optimism surrounding the Chinese property market after China announced easing measures for the housing market, but base metals have since come off best levels and are trading indecisively at the time of writing, although 3M LME copper found a current base just above USD 8,500/t, whilst Anglo American cutting its 2023 copper production guidance to between 840-930k from a prior of 910k-1.02mln tonnes. Still, the miner expects overall 2023 production (across all products) to be +5% Y/Y.

09 Dec 2022 - 10:20- Research Sheet- Source: Newquawk