EUROPEAN COMMODITIES UPDATE: Comms trade rangebound following hawkish FOMC Minutes and global risk-on tone

Crude Oil: WTI/ Brent +0.8%

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  Crude benchmarks have traded subdued to start the European session despite the positive risk tone following NVIDIA earnings and further reporting about the proposed 28-point plan to end the war in Ukraine. After grinding higher throughout Wednesday's US session, WTI and Brent pulled back to a trough of USD 59.27/bbl and USD 63.52/bbl respectively before extending to session highs of USD 59.78/bbl and USD 64.08/bbl as European traders stepped into the market. Despite the muted trade, benchmarks currently remain near session highs as the European session continues.


• During the latter part of Wednesday's session, the FT reported that the proposed 28-point plan would include territorial concessions by Ukraine and a rollback of American military assistance. Even though the US has signalled to Ukrainian President Zelensky that he must accept the framework and its main points, Zelensky has consistently stated that giving up Ukrainian land is off the table in any peace negotiation.


• The first report of the proposed 28-point plan saw a gradual selloff in crude benchmarks throughout Wednesday's European trade. However, benchmarks haven't reacted much to the recent reporting by the FT.

Precious Metals: XAU -0.4%, XAG -0.8%

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  Spot XAU sold off at the start of the APAC session and has continued to drift lower following the hawkish FOMC minutes and the bid seen across global equities as NVIDIA posted positive earnings. After a slight bid to a peak of USD 4110/oz at the start of APAC trade, XAU sold off to a trough of USD 4042/oz before consolidating in a USD 4042-4085/oz band. As the European session got underway, the yellow metal briefly extended to a new session low of USD 4039/oz before bouncing back into the earlier band.


• Within the FOMC minutes, it noted that most participants think that further cuts are appropriate, but several did not see a December cut as likely. This follows on from Fed Chair Powell's comments in the post-meeting press conference that another cut in December is far from assured. Markets are now pricing a 27% chance of a December cut compared to 48% chance prior to the Minutes release.

Base Metals: 3M LME Copper +0.1%

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  Base metals have traded rangebound to start the European session despite the positive global risk tone, outside of China, following NVIDIA earnings. 3M LME Copper started positive and bid higher to a peak of USD 10.83k/t at the start of APAC trade. However, the red metal fell lower and as the European session got underway, copper extended losses to a trough of USD 10.72k/t. Thus far, 3M LME Copper has managed to bounce off worst levels and is currently trading at USD 10.80k/t.


• Despite the positive global risk tone, China seems to be benefiting the least as they fail to benefit from NVIDIA's performance.

20 Nov 2025 - 10:15- MetalsEU Research- Source: Newsquawk