EUROPEAN COMMODITY UPDATE: Crude/base metals supported in-line with the risk tone, catalysts light

Analysis details (10:10)

Crude benchmarks are firmer at present seemingly deriving support from the broader risk tone rather than any fresh geopolitical premia or crude specific drivers. Currently, WTI and Brent are posting gains of around USD 0.60/bbl; in-fitting with equities, the oil benchmarks are still negative on the week and around USD 10.00/bbl from the current WTD best. Fundamental drivers have been very slim and we continue to await any fresh readout from the ongoing online talks between Russia and Ukraine, the morning’s only pertinent update on this has been Ukraine stating that the Bucha events altered the mood of discussions. Elsewhere, Ukraine’s gas grid warned that Russian actions may impact gas flows to Europe while Japan is taking measures to combat the consumer impact of energy, proposing lifting the JPY 25/ltr ceiling on gasoline subsidies. Moving to metals, spot gold and silver are relatively contained though the yellow metal is still tied to the USD 1930/oz mark in-spite of making a marginal foray above the level overnight. Elsewhere, base metals are firmer across the board with focus on Zinc this morning after the LME acknowledged tightness within the market, adding that they are monitoring the situation across all metals.

08 Apr 2022 - 10:10- MetalsResearch Sheet- Source: Newsquawk