EUROPEAN COMMODITIES UPDATE: Oil and gold trend higher; nickel futures remain suspended

Analysis details (11:11)

WTI and Brent front-month futures are on a firmer footing and have been climbing since the APAC session following the prior day’s hefty selloff. The move yesterday was seemingly sparked by the UAE Ambassador to Washington said they favour an oil production increase and will be encouraging OPEC to consider higher output. This was then walked back on by the UAE Energy Minister who suggested that the UAE is committed to the OPEC+ agreement and its existing monthly production adjustment mechanism. Meanwhile, the Iraqi oil minister said OPEC+ increases are enough and extra output hikes could harm the market. For reference, WTI and Brent settled lower by USD 15.0/bbl and USD 16.8/bbl respectively. In terms of today’s session, oil futures started grinding higher since the opening of Chinese markets, whilst the separate pressers from the Russian and Ukrainian Foreign Ministers only added to the bullish omens as the talks did not lead to material progress nor a ceasefire. Spot gold gained during the press conferences as the tone of the ministers was watched, testing USD 2000/oz to the upside. Elsewhere, LME said it will permit nickel position transfers although trading remains halted, whilst Shanghai futures exchange is to resume trading in some nickel futures contracts as of March 11th but will adjust margin requirements and trading limits for some contracts. On that note, Chinese nickel giant Tsingshan secured bank lifelines following the historic short squeeze, according to reports.

10 Mar 2022 - 11:10- EnergyResearch Sheet- Source: Newsquawk