EUROPEAN COMMODITIES UPDATE: Crude consolidates, precious metals are cushioned, and base metals are hit

Crude Oil: WTI Apr +0.1%/Brent May +0.2%

• Modestly firmer intraday but largely consolidating after Friday's decline, with the complex largely withstanding the risk aversion across other markets at the time of writing.


• Chinese CPI data slipped into negative territory for the first time in over a year, while tariff concerns lingered as China's retaliatory tariffs against the US's March 4th additional tariffs took effect today.


• In geopolitics, the US Treasury was reported on Friday to be examining options for easing energy sanctions on Russia only if Russia and Ukraine reached a peace deal, according to Reuters citing sources. It was also reported that President Trump's team was weighing ending the oil price cap if Russian talks progressed, according to Bloomberg.


• Elsewhere, Iraq set the April Basrah medium crude official selling price to Asia at plus USD 2.15/bbl vs Oman/Dubai and the OSP to Europe at minus USD 1.50/bbl vs Dated Brent, while it set the OSP to North and South America at minus USD 0.65/bbl vs ASCI, according to SOMO.


• The week ahead sees the monthly oil market report releases: EIA STEO on Tuesday, OPEC MOMR on Wednesday, and IEA OMR on Thursday.


• WTI resides in a USD 66.48-67.34/bbl range while Brent sits in a USD 69.84-70.57/bbl range.

Precious Metals: Gold U/C, Silver +0.1%, Palladium +0.3%

• Modest intraday gains amid the broader risk aversion, with the complex's haven properties keeping losses at bay for now, albeit a rising Dollar keeps the upside capped at the same time.


• Spot gold resides in a USD 2,896.71-2,918.39/oz range at the time of writing, after Friday's 2,896.91-2,930.54/oz parameter and Thursday's 2,891.15-2,926.72/oz confines.

Base Metals: 3M LME Copper -0.4%

• Mostly lower but off worst levels with the complex largely hampered by the aforementioned tariff news.


• Furthermore, Chinese CPI data slipped into negative territory for the first time in over a year, whilst Deputy to China's National People's Congress (NPC) said China's "around 5%" GDP target for 2025 is certainly challenging and by no means an easy feat, via Global Times.


• Albeit, a slight recovery in risk around 09:00GMT (despite no obvious newsflow) saw prices clamber off lows, with 3M LME copper notching a current USD 9,510.35-9,640.60/t intraday range.

10 Mar 2025 - 09:55- ForexGeopolitical- Source: Newsquawk