EUROPEAN COMMODITIES UPDATE: Subdued trade across commodities as Dollar gains ground and news flow remains quiet

Analysis details (09:52)

• WTI and Brent futures have turned negative in recent trade despite the overall mixed/contained risk sentiment as participants await the next catalyst, with WTI Sept edging lower towards USD 82/bbl (vs high 83.30/bbl) and Brent Oct closer to USD 85.50/bbl (vs high 86.73/bbl). News flow for the complex has been light, although over the weekend Saudi Arabia hiked most of its Official Selling Prices (OSP) to Asia, whilst the OSP to Europe was hiked by US 2/bbl, and the OSP to North America was left unchanged. Sticking with Saudi, Armaco said that despite economic headwinds, they see positive signals that global demand remains resilient. Aramco CEO added that supplies remain significant and adequate even with recent cuts by Saudi Arabia and “we are able to satisfy customers.” Aramco highlighted that China's demand has been stronger than expected and Chinese demand is expected to grow and support the current market recovery. The energy giant is seeing signs of recovery of the economy in H2, still room for aviation recovery further.


• Over to metals, spot gold is subdued by the firmer Dollar and hovers around the USD 1,935/oz mark – within Friday’s parameters, and just under the 50 DMA at 1,944/oz. Base metals are similarly pressured with not much else to mention aside from the broader Dollar story as risk remains contained overall. 3M LME copper found overnight support at USD 8,500/t but remains caged to a tight USD 8,504-89/t ahead of this week’s risk events including both US and Chinese inflation alongside Chinese trade data.

07 Aug 2023 - 09:52- Research Sheet- Source: Newsquawk