EUROPEAN COMMODITIES UPDATE: Oil leaks and gold loses its shine but base metals see a mixed session

Analysis details (10:12)

The losses across crude contracts continue as global economic slowdown and contraction fears intensify as the FOMC and BoE gear up to hike rates. China’s zero-COVID policy has proved to be a significant headwind as the region tackles what some describe as the worst spread since the Wuhan outbreak. Further, there has been some constructive noise regarding the Iranian Nuclear Deal as the Russian Foreign Minister Lavrov says an agreement on the revival of the deal is on the finishing straight. Russia recently complicated matters with additional demands. Against this backdrop, and with two major central banks poised to tighten monetary policy, WTI Apr has slipped over 6% to under USD 97/bbl (vs high 102.58/bbl) whilst Brent May threatens a breach of USD 100/bbl (vs high 105.71/bbl). Metals are mixed with precious metals pressured as the FOMC draws closer – spot gold has continued to decline under USD 1,950/oz since the APAC session, down around USD 25/oz at the time of writing. LME copper is relatively flat on the day but under USD 10k/t. Meanwhile, LME announces Nickel contracts will resume trading on Wednesday, March 16th.

15 Mar 2022 - 10:12- MetalsResearch Sheet- Source: Newsquawk