EUROPEAN COMMODITIES UPDATE: Choppy trade in crude with metals subdued despite the softer Dollar

Crude Oil: WTI Apr U/C, Brent May +U/C

• A choppy session thus far with prices fluctuating on either side of the unchanged mark amid a lack of drivers this European morning, with traders continuing to weigh tariff implications with ongoing geopolitical developments alongside the next steps OPEC+ could take.


• Crude prices settled in the green on Monday albeit in choppy trade as markets digested Iraq supply, geopolitics and fresh Iran sanctions - with the market largely shielded from the equity selloff.


• US President Trump commented on Truth that they want the Keystone XL Pipeline built and suggested easy approvals.


• Traders look ahead to the weekly private inventory data after the US closes today.


• WTI resides in a current USD 70.63-71.26/bbl range with Brent in a USD 74.17-76/bbl parameter.


• Nat gas prices are mixed on either side of the pond but within recent ranges, and the price action is choppy at the time of writing.

Precious Metals: Gold -0.3%, Silver -0.3%, Palladium U/C

• Subdued trade across precious metals despite the softer Dollar but with price action contained to tight ranges amid a lack of drivers this morning.


• In terms of geopolitics, there is nothing major to report - Russia's Kremlin said President Putin is "okay" with European peacekeepers in Ukraine, referring to an earlier statement that such a move would be unacceptable.


• Spot gold remains at the record highs printed yesterday (USD 2,956.31/oz) with today's range currently between USD 2,929.64-2,953.42/oz. Support is seen at yesterday's trough - USD 2,921.47/oz.

Base Metals: 3M LME Copper -0.1%

• Lacklustre trade across base metals despite the weaker Dollar but with the broader sentiment on the back foot and newsflow on the quieter side.


• Russian President Putin said Russia and the US could consider working together on aluminium production.


• Separately, India could reportedly extend import curbs on low ash metallurgical coal used in steelmaking, according to Reuters sources.


• There were also recent favourable forecasts by Goldman Sachs which predicts the copper market is set for a sustainable price increase with a new range projected at USD 10,500-11,500 per tonne, while it expects copper deficits of 180,000 tons in 2025 and 250,000 tons in 2026.


• 3M LME copper currently resides in a USD 9,424.95-9,500.05/t range after finding resistance at the half-round figure.

25 Feb 2025 - 10:15- MetalsGeopolitical- Source: Newsquawk