EUROPEAN COMMODITIES UPDATE: Awaiting geopolitical updates from numerous regions/conflicts
WTI/Brent: -0.1%/-0.1%
- A hesitant start to the day as geopolitics dominates ahead of the weekend. WTI and Brent traded largely flat through the morning but are currently down by around USD 0.10/bbl, nearing overnight lows.
- In terms of Iran-related headlines, crude prices whipsawed on conflicting media reports yesterday and mixed signals from US and Iranian officials. This morning, Iran's Foreign Minister stated that negotiations will continue as long as the other party remains engaged, maintaining that no formal proposal from the US has been received.
- On Israel-Palestine, comments from Trump this morning reaffirmed his stance on the resumption of aid into Gaza.
- On Russia-Ukraine, talks are underway in Istanbul, with the Trilateral meeting between Turkey-US-Ukraine supposedly concluded. We are yet to hear the readout from it. Ahead, there will be another trilateral meeting, this time with Russia taking the place of the US.
- From these talks, we will be looking out for any surprising breakthrough, or a commitment to a Zelensky-Trump-Putin meeting. Talks will continue throughout the weekend. Putin this morning suggested he wants to meet with Zelensky and Putin as soon as arrangements can be made.
Dutch TTF: -0.4%
- Softer into the weekend, benchmark essentially just waiting for an update on the above geopolitics and particularly the situation around Ukraine.
- On this, the European benchmark sits within a EUR 34.73 to 35.70/MWh range, pivoting EUR 35/MWh at the time of writing
Gold: -1.0%
- Spot gold is continuing losses, pulling back from yesterday’s gains after soft data, lower yields and Fed rate cut bets aided the yellow metal.
- Thursday’s gains provided an attractive opportunity to get out of the metal, ahead of the weekend’s geopolitical events, which could eliminate several risks.
- At the time of writing, the yellow metal trades towards the upper end of a USD 3,205.49-3,252.17/oz range.
3M LME Copper: -1.0%
- Softer after the subdued mood in its largest buyer, China, overshadows the positive sentiment in Europe this morning.
- Currently rests within, but at the lower-end of, a USD 9,474.9-9,591.42/t range.
16 May 2025 - 09:55- ForexGeopolitical- Source: Newsquawk
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