EUROPEAN COMMODITIES UPDATE: Risk driven price action awaiting fresh catalysts

Analysis details (10:25)

Crude benchmarks are firmer this morning seemingly moving in-line with the modest risk-on action that occurred after the European cash equity open. At present, WTI and Brent are at the top-end of another modest USD 2/bbl range for the session that has seen Brent test but fail to surpass the USD 110.00/bbl mark. Fundamentals haven’t changed markedly from yesterday and we continue to await any significant updates from the ongoing Ukraine-Russia negotiations. As it stands, talks are ongoing, Ukraine acknowledges they are very difficult but there is no alternative and Russia continues to pushback on Bucha allegations. Technically, if Brent does surpass USD 110/bbl then Futures Tech notes pertinent resistance at USD 111.09/bbl. Moving to metals, spot gold and silver have eased off best levels as the morning progresses with the above risk action. Albeit, but in-fitting with broader action, the magnitude of the move has been fairly minimal and spot gold remains near USD 1930/oz. More broadly, Bloomberg sources indicate that JPMorgan is mulling its commodity exposure following the nickel episode. 

05 Apr 2022 - 10:25- MetalsResearch Sheet- Source: Newsquawk