EUROPEAN COMMODITY UPDATE: Crude remains on the backfoot post-SPR release announcement

Analysis details (09:27)

 In the crude complex, WTI (-1.2%) and Brent (-0.8%) remain on the backfoot following yesterday’s SPR announcement by the Biden administration with WTI breaching it's weekly low printed on Tuesday at USD 98.44 to print a session low of USD 97.78, whilst Brent has so far been unable to take out its weekly low of USD 102.19. Markets are continuing to digest the fallout from yesterday’s SPR announcement with US policymakers attempting to address rising energy prices across the nation. Other potential measures could see oil companies fined for unused leases or idled wells, whilst the White House Press Secretary Psaki refused to take a gas tax holiday off the table. Outside of the US, the latest production metrics for Russia revealed that oil and gas condensate production slipped to 11.01mln BPD in March vs. 11.08mln BPD in February, with the March 31st figure declining to 10.61mln BPD, according to Reuters sources. From a geopolitical perspective, markets await the resumption of virtual discussions between Ukraine and Russia today. On the ground in Ukraine, the conflict shows little signs of letting up, whilst Russia has accused two Ukrainian military helicopters of attacking a fuel storage depot in Belgorod, Russia. Also on a geopolitical footing, traders will be cognizant of the EU-China summit video conference today which is set to see EU Presidents push China on its stance towards Ukraine/Russia and the nation’s approach to forced labour. In the metals space, it's been another uninspiring session for gold thus far with the yellow metal unable to break out of the USD 1900-50/oz range. Elsewhere, copper remains subdued following the cautious mood overnight and with Chinese Caixin Manufacturing PMI printing a 2-year low, whilst Dalian Iron Ore was able to settle near an 8-month high overnight.

01 Apr 2022 - 09:26- MetalsGeopolitical- Source: Newsquawk