EUROPEAN COMMODITIES UPDATE: Crude benchmarks higher despite Saudi oil price cuts and US inventory build

Crude Oil: WTI +0.8%, Brent +0.7%

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  Crude benchmarks have pared back on Wednesday’s losses following comments from Israeli Defense Minister Katz and sellers failing to extend through the lows of the 7-day range. WTI and Brent traded positively throughout the APAC session, grinding c. USD 0.50/bbl higher to peak at USD 60/bbl and 63.89/bbl respectively. After testing prior support lows, crude benchmarks sold off, reversing APAC gains, and troughed at USD 59.46/bbl and 63.37/bbl. However, this selloff was short-lived and benchmarks bid higher to a peak of 60.51/bbl and 64.34/bbl, respectively.


• As the European session got underway, comments by Israeli Defence Minister Katz declaring war on smuggling operations through drones saw benchmarks gradually reverse earlier losses.


• Saudi Arabia cut its December Light Crude OSP to Asia, in line with expectations. This confirms that the kingdom is comfortable with Brent prices holding between USD 60-65/bbl. Slight downticks were seen in crude benchmarks but the move wasn’t sustained.


• To add to cutting oil prices by Saudi Arabia, the US EIA said crude inventories rose 5.2M barrels, the biggest jump in US stockpiles since July. This comes amid concerns of an oversupplied oil market.

Precious Metals: XAU +0.8%, XAG +1.6%

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  Spot XAU has followed on from Wednesday’s gains as the yellow metal continues to consolidate following its 11% selloff from ATHs. XAU dipped to a trough of USD 3964/oz early in the APAC session but reversed higher and extended through Wednesday’s high at USD 3990/oz as the European session risk sentiment started off weak. Currently, the yellow metal is trading near session highs at USD 4017/oz.


• US Challenger job cuts unexpectedly came out earlier than expected, coming in at a 7-month high at 153.074k from a 54.064k figure in September. This comes contrary to a positive ADP report released in Wednesday’s session. There was no reaction to the early release, in spot gold.

Base Metals: 3M LME Copper +0.4%

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  Base metals are trading mixed, with iron ore continuing to sell off as China steel industry heads into the low season while copper gains following risk-on tone during the APAC session.


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  3M LME Copper dipped to a low of USD 10.69k/t before driving higher as it followed the CME Copper bid back above USD 5/lb. 3M LME Copper peaked at USD 10.79k/t and remains in a c. USD 40/t band near session highs.

06 Nov 2025 - 10:15- MetalsGeopolitical- Source: Newsquawk