EUROPEAN COMMODITIES UPDATE: Crude bid but still at the trough of recent parameters, metals marginally firmer

WTI/Brent: +1.5%/+1.3%

• Crude futures are trading towards session highs, calmly attempting to pare back some of the recent losses, with overnight newsflow relatively light aside from private inventory data, which printed a larger-than-expected draw.


• WTI and Brent are trading on USD 65 and 67/bbl handles respectively, back above their 50DMAs.


• We look at whether any further US-Iran Nuclear talks will take place.


• Early this morning, US Envoy Witkoff said that talks with Iran are "encouraging," adding that it's now time to sit down and work toward a comprehensive deal.


• Do note: the previous round of talks in Oman was cancelled due to Israeli strikes. Iran had stated it would not engage with the US while Israeli attacks continued - actions that would now constitute a breach of the nations' ceasefire agreement, meaning the door for further specific nuclear talks could be open.


• Regarding President Trump’s post that China can continue to buy oil from Iran, Fox’s Lawrence clarified that “there have been no [US] sanctions lifted on Iran... the President was simply calling attention to the fact that... the Strait of Hormuz will not be impacted, which would have been devastating for China.”


• Elsewhere, the NATO summit is ongoing. US President Trump has already spoken, on Article 5, he said "we are with them all the way". Also in focus will be on if there will be any mention of Russia; elsewhere, US President Trump is set to meet his Ukrainian counterpart on the sidelines of the summit.

Gold: +0.2%

• Spot gold is cautiously attempting to rebound from recent losses sparked by the improved geopolitical backdrop.


• The haven traded above the USD 3,300/oz mark for the entirety of the APAC session, and now approaches session highs, after support around the USD 3,326/oz mark.


• In terms of drivers today, we are expecting further comments from Fed Chair Powell, who yesterday echoed his wait-and-see stance, and left all options open for the July meeting.

3M LME Copper: +0.4%

• Copper futures trade with modest gains, 3M LME contracts trading on either side of USD 9,700/t mark.


• The red metal trades within a USD 9,679.9-9,743 range, attempting to return towards session highs, after recent fleeting pressure on the LME stocks data, which showed Copper down 1200.


• ING notes the tightening in the copper market follows a significant decline in inventories, which has dropped by roughly 176kt since the start of the year, now standing at just 95kt as of Tuesday, coupled with a tight supply in the concentrate market.

25 Jun 2025 - 10:20- ForexGeopolitical- Source: Newsquawk