EUROPEAN COMMODITIES UPDATE: Crude benchmarks trade rangebound despite rising geopolitical tensions, XAU forms another new ATH

Crude Oil: WTI +0.9%, Brent +0.8%

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  Crude benchmarks remain rangebound throughout the APAC session despite increased Russian oil restrictions and rising trade tensions. WTI and Brent oscillate in a USD 58.55-59.11/bbl and USD 62.28-62.75/bbl band respectively, as markets wait for further confirmation of Russian oil export restrictions.


• It was reported in the early hours that Indian refiners may take less Russian oil after US President Trump said Indian PM Modi had committed to stop taking Russian crude. Crude benchmarks didn’t shift on this news as refiners await official guidance from the Indian government.


• In addition, US Treasury Secretary Bessent said the US expects Japan to stop Russian energy imports.


• Russia’s energy minister said oil refineries will postpone maintenance work to meet market needs. This comes as Russian Deputy PM Novak said on Wednesday that Russia has a stable domestic market supply.


• Crude stocks are expected to build 0.233mln as the EIA reports its weekly crude stockpile.


• On the geopolitical front, Russia continues to strike Ukrainian energy facilities, which led to Naftogaz halting operations at several important facilities. Ukraine responded with its own attacks on Russian facilities, where it was reported that it struck Russia's Saratov oil refinery (140k bpd).

Precious Metals: XAU +0.6%, XAG +0.3%

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  Spot XAU continues to climb to record levels, peaking at USD 4242/oz during the APAC session and currently trading just shy of best levels at USD 4230/oz. This comes as US-China tensions, ongoing US government shutdown and further expectations of rate cuts in the US drive the precious metal higher.


• Late in Wednesday’s session, US President Trump acknowledged that the US is in a long-term trade war with China, despite US Treasury Secretary Bessent attempting to cool tensions by suggesting extending the pause of import duties on Chinese goods.

Base Metals: 3M LME Copper -0.4%

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  Base metals currently trading relatively muted as trade tensions weigh on the metal space while structural challenges support the metal space. 3M LME Copper is currently oscillating in a c. USD 130/t range as the market waits for more news.


• Chinese smelters have stepped up shipments abroad of copper as the rally in metal prices create opportunities for top-producing countries to profit from additional exports.

16 Oct 2025 - 10:10- EnergyGeopolitical- Source: Newsquawk