Commodities Daily - December 5, 2019

> Oil prices surge on upbeat EIA report, possibility of deeper OPEC+ cuts. Today, all eyes will be on any recommendation by the JMMC to the wider OPEC+ group and any other headlines that emerge from Vienna. We expect elevated volatility but for Brent to trade within the technical range of $61.4-64.0/bbl as reports come in from Vienna. However, we do not expect full clarity on the 2020 production cut deal until tomorrow's OPEC+ meeting.> Gold consolidates just above $1,475/oz ahead of Fed meeting next week, Yesterday, market activity picked up at around 12:00 Moscow time, when Bloomberg published an article saying that the US and China were close to reaching a consensus on canceling import tariffs as part of their long-anticipated "phase one" trade agreement. Gold slid nearly $10/oz before finding support from a weak ADP employment report and downbeat ISM nonmanufacturing reading. Today will see the release of GDP data from the eurozone, a weekly gold reserves update from Russia and a raft of US data including initial jobless claims, the trade balance, and factory and durable goods orders.