EUROPEAN COMMODITY UPDATE: Crude benchmarks continue to pare back yesterday’s geopolitical-inspired downside
Analysis details (09:45)
WTI and Brent have continued to pare back some of the aggressive selling pressure seen during yesterday’s session which was stoked by positive readouts from Ukraine and Russian peace talks. Since then, the tone of commentary from the Western side has been particularly cynical with regards to Russia’s intentions whilst updates on the ground from Ukraine have suggested that military attacks by Russia in the nation are continuing. From a broader geopolitical perspective, both Russia and China have been out this morning highlighting the current strength of their relationship, something which will disappoint those who hoped that China would at some stage distance themselves from Russia. Germany provided an update alongside the European entrance to market noting that although there are currently no gas supply shortages, it has declared an “Early Warning” stage for the gas supply emergency and prepare for a potential escalation by Russia. From a data perspective, ahead of the DoE inventories later today at 15:30BST/10:30EDT, the private report revealed a headline draw of 3mln bbls vs. exp. draw of 1mln bbls with smaller than expected draws seen in gasoline and distillate. From a technical standpoint, May’22 WTI has made it back up to USD 105.81 vs. yesterday’s peak of USD 107.84, whilst June’22 Brent sits at 111.73 vs. yesterday’s peak of USD 114.83. In the metals space, spot gold has consolidated around the USD 1920/oz mark after dipping as low as USD 1889/oz yesterday. Elsewhere and in-fitting with the broader price action seen in the commodity complex, aluminium has staged a rebound from yesterday’s losses with the metal a key play on events surrounding Russia, whilst 3-month LME copper is higher to the tune of 1%.
30 Mar 2022 - 09:44- MetalsImportant- Source: Newsquawk
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