EUROPEAN COMMODITIES UPDATE: Some consolidation in crude, whilst gold tested its 21DMA and LME metals see a mixed session

Analysis details (10:12)

WTI and Brent front-month futures are modestly softer on the day as the Dollar picked up in early European hours, with global markets experiencing some reprieve from yesterday’s whipsaw price action post-US CPI. Crude-specific headlines have been light thus far as markets await the next catalyst, whilst the overarching themes of elevated inflation/slowing growth concerns, central bank tightening, geopolitics, and China’s zero-COVID remain. WTI Nov dipped back under USD 89/bbl in early hours and Brent hovers around USD 94/bbl at the time of writing, with both contracts off best levels but still holding onto a lion-share of yesterday’s gains with little new to add from a fundamentals perspective. In terms of gas, Turkish President Erdogan has ordered the energy ministry to build a gas hub in Turkey following talks with Russian President Putin and added that both countries will immediately work on Putin's proposal to transport Russian gas, according to NTV cited by Reuters. Elsewhere, spot gold found resistance at it is 21 DMA (USD 1,671.50/oz) with the yellow metal edging lower as the USD extends on intraday highs. In terms of base metals, LME futures are mixed/contained with 3M copper holding onto levels above USD 7,500/t, but LME aluminium dips following the recent rise seen amid worries over a potential ban on Russian supplies. Further, on this front, Russian press Interfax reported that "Rusal still fully complies with all the requirements of OFAC, reports of a possible re-inclusion in the US sanctions list are not true", citing the head of the board of directors of En+.

14 Oct 2022 - 10:12- Research Sheet- Source: Newsquawk