EUROPEAN COMMODITIES UPDATE: Tight ranges for commodities whilst crude eyes a double-dose of DoE releases

Analysis details (10:52)

WTI and Brent front-month futures traded with no firm direction in early European hours before picking up modestly in recent trade. The latest uptick in prices came in conjunction with headlines from Libya as the NOC suspended oil exports from Es Sider port following overnight reports that the Ras Lanuf oil terminal is under a force majeure. At the same time, the Shell CEO said he sees an ever tighter oil & gas market and upward pressure on oil for some time to come. Earlier in the session, some downticks were seen in the complex after Chinese President Xi suggested China's COVID prevention control and strategy is correct and effective and must stick with it – which follows on from yesterday's optimism as some restrictions were loosened. Ahead, the OPEC meeting will commence at 12:00BST/07:00EDT, followed tomorrow by the JMMC at the same time, and the OPEC+ meeting at 12:30BST/07:30EDT. As things stand, a smooth OPEC+ meeting is expected, although surprises cannot be discounted after the prior meeting saw last-minute sources shift expectations. Markets may also keep an eye on members' plans after the expiry of the Declaration of Cooperation (DoC). OPEC+ is expected to stick to the output plan telegraphed at the prior meeting – a total production increase of 648k BPD for August – with recent Reuters sources also backing this view. To recap, at the start of June, OPEC+ members agreed to hike output by 648k BPD in July and August – with the September additions split across the two months. Elsewhere, spot gold is under some mild pressure as the Buck and Bond yields picked up, with the yellow metal back to near-two-week lows but still on a USD 1,800/oz handle. Base metals are mixed but off best levels after President Xi reaffirmed China's COVID stance – LME copper fell back under USD 8,500/t before finding support at USD 8,300/t in a tight intraday range thus far, whilst Dalian iron ore futures came off highs and the Singapore contract retreated.

29 Jun 2022 - 10:52- MetalsEconomic Commentary- Source: Newsquawk