EUROPEAN COMMODITIES UPDATE: Positivity in crude and metals underpinned by sentiment and a softer Buck

Analysis details (10:42)

WTI Jul and Brent Aug futures have held onto yesterday’s upside, which saw both contracts post gains of over USD 3/bbl, with the former now re-eying USD 115/bbl to the upside (vs low 113.61/bbl) whilst the latter just topped USD 115/bbl (vs low 113.77/bbl). Market fundamentals have not changed although the market mood is tilting-positive whilst US players are gearing up for a long weekend; note, some are also citing Memorial Day as the start of the US driving season. Meanwhile, there is little to add on the EU Russian oil embargo, whilst China’s Beijing City reiterates swift COVID measures to resume normalcy. Next week sees the OPEC+ confab in which oil producers are poised to continue with the pact of increasing oil output to the previously agreed amount of 432k BPD – expectations that have also been backed by six OPEC sources via Reuters. The meeting is to take place shortly after two Senior US advisors’ “secret visit” to Saudi regarding a potential deal to increase oil production to tame the rise in prices in the run-up to the US driving season. All-in-all, the gathering will likely be similar to the recent string of swift meetings. Elsewhere, metals markets are buoyed by the softer Dollar. Spot gold edges higher and is poised for a firmer week overall as the yellow metal notches gains above USD 1,850/oz. LME metals are mostly firmer with copper aiming at USD 9,500/t to the upside, supported by the risk tone.

27 May 2022 - 10:42- MetalsGeopolitical- Source: Newsquawk