EUROPEAN COMMODITIES UPDATE: Crude and Copper continue to be dragged by equity selloff as XAU bounces at USD 4k/oz

Crude Oil: WTI/ Brent -0.4%

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  Crude benchmarks initially sold off during the APAC session as risk sentiment continued to sour but has pared back on earlier losses at the start of the European session. WTI and Brent dipped to a trough of 59.28/bbl and 63.62/bbl respectively before reversing higher to peak at 59.73/bbl and 64.07/bbl. Currently, benchmarks have fallen from best levels as the markets continues to digest a worsening risk tone.


• Early in the APAC session, the US Treasury announced that sanctions on Russian oil companies have reduced oil revenues and that the sanctions may have a long-term negative effect on Russian sales. To add, a White House official has said that US President Trump is ready to sign a Russia-sanctions bill. This could have acted as an additional headwind for crude benchmarks as prices fell throughout the APAC session.


• On geopolitics, Ukrainian President Zelensky is to visit Turkey on Wednesday to restart negotiations with Russia to end the war; however, recent commentary by Russia’s Kremlin states that Russia will not be taking part in these talks. US Special Envoy Witkoff is reportedly to be in attendance in Turkey as well, according to Reuters sources. Elsewhere, Sky News Arabia reported that the Lebanese President says Hezbollah realises that it is over and that the group have no choice but to negotiate.

Precious Metals: XAU -0.2%, XAG +0.2%

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  Spot XAU has steadied above USD 4k/oz as the metal continues to struggle to act as a traditional safe haven during US equity selloffs. XAU fell throughout the APAC session from the open at USD 4044/oz to a trough of USD 4004/oz as the European session got underway. The yellow metal briefly dipped below US 4k/oz to a low of 3998/oz before attracting buyers that took price c. USD 45/oz higher to a high of USD 4042/oz as US data got released.


• US initial jobless claims was unexpectedly released, and came in at 232k in the October 18th week. This saw some weakness in the dollar and helped XAU bounce from USD 4k/t. However, this hasn’t shifted market pricing for the next December meeting, which has been moving hawkishly over the past few days.

Base Metals: 3M LME Copper -0.6%

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  Base metals have continued to drop, following the broader risk aversion. 3M LME Copper opened at USD 10.76k/t and gradually fell c. USD 100/t to a trough of USD 10.66k/t. The red metal has managed to find a base at these levels and currently, 3M LME Copper is trading in tight c. USD 70/t band at the lows of the day.


• On aluminium, Rio Tinto (RIO LN) has reduced production at its Yawun alumina refinery to extend its operational life, with output set to decline by 1.2mln tonnes annually and the refineryʼs production to be cut by 40% in 2026. To add, the co. is imposing surcharges on aluminium shipments it sells to the US.

18 Nov 2025 - 10:10- MetalsGeopolitical- Source: Newsquawk