EUROPEAN COMMODITIES UPDATE: Commodities following the global risk-off sentiment

Crude Oil: WTI/ Brent -1.5%

• Crude benchmarks have been weighed on by the overall risk-off sentiment seen across markets as the European session gets underway. After oscillating in a tight c. USD 0.20/bbl range during the APAC session, WTI and Brent extended on Monday’s low at USD 60.51/bbl and 64.33/bbl respectively to a trough of USD 60.06/bbl and USD 63.91/bbl as global risk sentiment sours.
• Following on from the OPEC+ meeting at the weekend, Libya’s oil minister said that there is a target to increase oil output to 2mln BPD in the next five years from its current levels at 1.4mln BPD.
• On the nuclear front, the Iranian government spokeswomen said that Tehran will never move towards building a nuclear bomb, reiterating previous statements to not build such a weapon. This comes as Iran’s President said over the weekend that Tehran will rebuild its nuclear facilities with greater power.

Precious Metals: XAU -0.3%, XAG -0.8%

• Spot XAU continues to oscillate within range formed over the prior 5 days, despite a wider risk-off theme running through markets during APAC trade and into the European session. XAU dipped to a trough of USD 3967/oz as the APAC session ended before a slight bounce to the key USD 4k/oz level.
• Global risk-off sentiment has a lack of clear drivers but potentially comes following a lack of 2026 guidance from Palantir, giving concerns over its stretched valuation. This has weighed heavily on the tech sector during futures trade and has weighed on global equity benchmarks.

Base Metals: 3M LME Copper -2.3%

• Base metals continue to fall following the tech-led equity selloff in global benchmarks. 3M LME Copper peaked at USD 10.86k/t early in APAC trade before extending on last week’s low at USD 10.81k/t to a trough of USD 10.65k/t. Currently, the red metal has extended on earlier lows and is trading at session lows at USD 10.61k/t.
• Codelco eased concerns about a lack of supply in the copper market as it expects its full year output to be higher than in 2024. This comes after a series of disruptions across key copper mines across the globe.