EUROPEAN COMMODITIES UPDATE: Relatively contained trade with drivers limited thus far

Analysis details (10:25)

• A relatively limited session thus far for the crude space as geopolitical developments have been somewhat on the lighter side in recent hours and as the morning's main data releases sparked only little movement. Action which keeps the benchmarks near yesterday's data-driven troughs and almost entirely disregarding a brief upward move on the weekly private inventory data. On that, today's EIA release is expected to post a headline build of 0.239mln.


• To briefly recap today's macro releases, the latest German Ifo survey for November was better than expected across the board and much more encouraging that the Flash PMIs for the same period. Though, the release sparked little move at the time but is perhaps a factor in the complex's most recent move off of lows to near unchanged. As it stands, WTI and Brent Dec'23 contracts are towards the mid-point of respective USD 83.16-83.93/bbl and USD 87.55-88.24/bbl parameters.


• For metals, spot gold is near unchanged in very narrow parameters as we await fresh macro drivers in a schedule dominated by earnings before/after remarks from ECB's Lagarde and Fed's Powell, though both Central Bank heads are in their respective quiet periods and as such won't be commenting on current monetary policy. Elsewhere, base metals are ever so slightly in the green, perhaps given the mentioned data, and also as while the USD is firmer it hasn't made too much headway higher; though, to be clear, the magnitude of gains in the likes of LME Copper are relatively sparse.

25 Oct 2023 - 10:22- Research Sheet- Source: Newsquawk