EUROPEAN COMMODITIES UPDATE: Choppy trade but base metals on the front-foot amid China optimism

Crude Oil: WTI Jun -0.6%, Brent Jul -0.5%

• Choppy this European morning as the complex remains mostly underpinned after climbing yesterday amid the positive risk sentiment and US President Trump's warning of secondary sanctions on Iran oil purchases.


• US President Trump said they put sanctions on Iranian oil yesterday and whoever takes oil from Iran cannot do business with the US. Trump later posted that all purchases of Iranian oil, or petrochemical products must stop now and any country or person who buys any amount of oil or petrochemicals from Iran will be immediately subject to secondary sanctions.


• Meanwhile, China is to seek renegotiated terms on its Venezuela oil contracts, according to Bloomberg, and s second Chevron (CVX)-chartered vessel began to return oil cargo in Venezuela, according to ship tracking data and a Reuters source.


• Newsflow this morning for the complex has been rather light as traders look ahead to the US jobs figures.


• WTI Jun resides in a current 58.73-59.87/bbl range while Brent Jul sits in a USD 61.76-62.72/bbl parameter.

Precious Metals: Gold +0.6%, Silver +0.3%, Palladium +0.2%

• Modest upside seen across precious metals amid a softer Dollar with newsflow somewhat quieter this morning as EUR traders re entered the market following Labor Day yesterday.


• Little action was seen on news that China is currently evaluating possible US trade talks.


• Spot gold gradually edges higher on the back of the softer dollar and heading into the key US jobs data.


• The yellow metal currently resides in a USD 3,227.47-3,263.47/oz range, well within yesterday's USD 3,201.96-3,288.16/oz parameter.

Base Metals: 3M LME Copper +1.9%

• Notable gains in the base metals complex amid the positive risk environment and as both the US and China suggested a willingness by the other side for talks.


• China is said to be conducting an assessment on US trade negotiations and urged the US to demonstrate sincerity for trade talks, while it urged the US to correct mistakes regarding tariffs and noted it is currently evaluating possible US trade talks.


• US Secretary of State Rubio said the Chinese want to meet and talk, while he added those talks will come up soon and there's a broader question about how much we should buy from China going forward.


• 3M LME copper currently resides in a USD 9,241.95-9,411.15/t range at the time of writing awaiting the US jobs report.

02 May 2025 - 10:20- ForexGeopolitical- Source: Newsquawk