EUROPEAN COMMODITIES UPDATE: Crude and base metals underpinned, precious metals deviate

Crude Futures: WTI Jul+1.0%, Brent Aug +0.9%

• Sentiment so far underpinned by tariff developments and an NVIDIA earnings beat - crude benefits with the contracts higher by USD 0.75/bbl


• On the trade front, a US Trade Court blocked US President Trump’s Liberation Day tariffs. The court determined that President Trump does not hold the authority to introduce the tariff measures he announced, via emergency power legislation.


• Concerns on Russia also loom, talks between Russia and Ukraine are set to commence on Monday the 2nd, this time, a focus will be on Trump pressure, which could come in the form of further sanctions, as he has previously touted.


• On US/Iran, prices were pressured on a Reuters report that Iran may pause enrichment subject to terms. This report was later denied by Tehran.


• Elsewhere, following yesterday's OPEC+ meeting (which resulted in no policy change as expected), Kazakhstan reiterated that it cannot cut oil production right now and hopes to increase output to above its current plan later this year. The market focus will largely be on the Saturday meeting, assuming no policy decision is front-run and announced at the Wednesday meeting.


• Finally, private inventory data showed a surprise drawdown in headline crude stockpiles. Traders look ahead to the DoEs released at a delayed time 17:00BST due to the US holiday on Monday.


• WTI Jul trades in a USD 61.76-63.07/bbl range but Brent sits in a USD 64.55-65.50/bbl parameter.

Precious Metals: Gold -0.3%, Silver +1.0%, Palladium +0.8%

• Spot gold is subdued amid haven outflows emanating from the aforementioned tariff updates, which unwinds some risk premium across havens.


• Spot silver and palladium benefit from the tariff updates given their uses in tariff-related products.


• Spot gold trades in a USD 3,245.56-3,295.24/oz range at the time of writing, with the 50 DMA seen at USD 3,222.38/oz.

Base Metals: 3M LME Copper +0.6%

• Copper is benefitting from the risk environment, price action for the base metal has been choppy, with an upward tilt since the arrival of European participants. Specifically, it trades within a USD 9,561.3-9,645.4/t range and is currently approaching session highs.


• ING notes that copper inventories on the LME fell to the lowest level in almost two years, with withdrawals continuing at warehouses in Rotterdam.


• Dalian iron ore ended daytime trade with gains of 1.3% amid the tariff-related news.

29 May 2025 - 10:00- ForexGeopolitical- Source: Newsquawk