September 03, 2024 10:37 GMT
COMMODITIES: Risk-Off Bleeds into Energy, Industrial Metals
COMMODITIES
- We noted the pullback in equities across the European morning, and the fade in risk is also being felt across commodities, with Brent and WTI crude futures both sharply lower. Brent crude futures now lower by just over 2% to approach the August lows and horizontal support at $74.62 and $75.10.
- Intraday weakness is building on the already bearish backdrop stemming from the risk of a market surplus via weak demand and the expectation of additional supply from OPEC+ from Q4 onwards. Broader industrial metals are also under pressure, with Dalian-listed iron ore off by 3.7% at the close and Shanghai Steel Rebar lower by 1.7%.
- USD strength will also be playing a part, with today's EUR/USD through yesterday's lows helping trigger the best print in the USD Index since Aug 20th - all weighing on the broader commodities complex.
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