EUROPEAN COMMODITIES UPDATE: Choppy crude and mixed based metals, but precious metals eke mild gains

Crude Oil: WTI Feb +0.2%/Brent Mar +0.2%

• Choppy trade thus far as prices take a breather from Monday's settlement which saw WTI +USD 2.25/bbl and Brent +USD 1.25/bbl.


• A firmer dollar and more constructive Middle Eastern geopolitics keep greater upside capped for now.


• On the Israel-Hamas deal, Jerusalem Post's Stein said assuming no last-minute surprises, the hope is that a Gaza hostage deal can be announced today, and added that there will be meetings on Tuesday in Qatar to conclude and finalize the deal.


• Elsewhere, Iran described the third round of talks with the E3 (France, Germany, UK) held on Monday as "constructive", according to the deputy foreign minister for legal and international affairs cited by Iran International.


• That being said, eyes also remain on Russia-Ukraine with reports of potential threats to the TurkStream gas pipeline (see below).


• WTI Feb resides in a 78.14-78.87/bbl range thus far and Brent Mar sits in a USD 80.20-80.94/bbl parameter.


• Ahead, traders this evening will be on the lookout for the EIA STEO.

Nat Gas: Dutch TTF Feb -1.2%

• A softer Tuesday for gas as prices pull back a touch following yesterday's rise which saw a settlement of +7% on Monday.


• Desks highlight a few drivers behind the move - 1) Ukraine allegedly attacked the compressor station on the Black Sea coast which feeds the TurkStream gas pipeline - the only pipeline transporting Russian gas into Europe after other routes were halted. 2) Cold weather across parts of Europe prompted higher demand. 3) US sanctions on Russian LNG Projects.


• Additionally, TVP Polish state broadcaster said a ship has been circling around the Baltic pipeline, citing foreign ministry sources.

Precious Metals: Gold +0.3%, Silver +0.3%, Palladium +1.0%

• Precious metals eke mild gains despite the firmer Dollar (albeit off highs).


• Demand present for precious metals against the backdrop of reports that US President-elect Trump's team is studying month-by-month tariff hikes of 2%-5%, although Trump still hasn’t reviewed or approved the gradual tariff idea, according to Bloomberg.


• Ahead, US PPI and Fed speakers to keep on the radar.


• Spot gold trades in a current USD 2,664.35-2,675.36/oz range, well within yesterday's USD 2,656.83-2,693.55/oz.

Base Metals: 3M LME Copper +0.7%

• Mixed trade across base metals despite the firmer Dollar, but copper remains somewhat stable near monthly highs with the broader market risk profile also positive.


• Iron ore prices overnight extended gains for a fourth straight session with traders citing lower shipments from key producers Australia/Brazil, coupled with constructive demand prospects based on robust steel exports.

14 Jan 2025 - 09:55- MetalsGeopolitical- Source: Newsquawk