EUROPEAN COMMODITIES UPDATE: Sideways trade across commodities amid indecisive risk ahead of US jobs

Analysis details (10:35)

• WTI and Brent front-month futures are flat with a slightly firmer bias as markets gear up for the OPEC+ JMMC and thereafter the US jobs report. The meeting is poised to start at 12:30BST/07:30EDT, according to Energy Intel's Bakr (previously guided for 13:00BST/08:00EDT). Sources cited by Reuters have suggested that OPEC+ is unlikely to tweak its current output policy (ex-voluntary cuts) on Friday. Eyes fall on what Saudi will opt to do with its voluntary cuts. State News citing an official source from the Saudi Energy Ministry suggested the nation will extend its 1mln BPD voluntary cuts for another month and warned the cuts “can be extended or extended and deepened.” Russia meanwhile announced it will be continuing its voluntary cuts into September by 300k (vs 500k BPD prior cuts). WTI meanders just under USD 82/bbl (vs low 81.55/bbl) while Brent October trades around USD 85.50/bbl (vs low 85.06/bbl). 


• Over to metals, spot gold is trading sideways in the run-up to the US jobs report (Full Preview available in the Newsquawk Research Suite), with the yellow metal contained within yesterday’s range (USD 1,929.19-1,937.79/oz). Base metals remain mostly subdued amid the indecisive mood but hold onto a bulk of recent gains as all eyes turn to NFP. 3M LME copper holds above USD 8,500/t but declined from a USD 8,686/t overnight high. Elsewhere, it’s worth flagging some demand commentary from shipping giant Maersk in the context of economic activity, with the firm warning that overall, the environment for container trade and logistics services remains challenging. “Currently there is no sign of a substantial rebound in volumes in the second half of the year…In Q2, the demand for containers declined between 4.0% and 6.5% year-on-year, due to weak import growth into North America, Oceania and Far East Asia.”, the shipping name said.

04 Aug 2023 - 10:35- MetalsResearch Sheet- Source: Newsquawk