EUROPEAN COMMODITIES UPDATE: Crude curtailed by Trump on Iran, metals await data & Powell

WTI/Brent: -4.0%/-3.7%

• WTI and Brent are suffering losses of USD 2/bbl, with commentary surrounding Iran applying steady pressure overnight and through the morning so far.


• On geopolitics this morning, US President Trump said the US is getting close to a deal with Iran, and they are in serious peace negotiations, adding that Iran has "sort of" agreed to the terms of a deal. This constructive commentary surrounding the nation pushed benchmarks to fresh session lows, adding to overnight losses.


• Losses overnight also stemmed from geopolitics, following a report that Iran is ready to sign an agreement with certain conditions in exchange for the lifting of sanctions and would commit to never making nuclear weapons and getting rid of its stockpiles of highly enriched uranium. The aforementioned lows for WTI and Brent are currently USD 60.65 and 63.63/bbl.


• Elsewhere this morning, crude bulls are looking at reports that Russia sent a fighter jet, which entered Estonian (NATO) territory for “around a minute” - to “check” on Estonia’s attempt to detain a shadow fleet tanker.


• Meanwhile, Trump said India has offered to drop all tariffs on the US, and EU Trade Commissioner Sefcovic said the US and EU have agreed to intensify trade talk contacts.


• Add to that, Israeli Chief of Staff said the nation will use all means to reach the perpetrators of the attack in the West Bank yesterday.

Dutch TTF: -0.5%

• Modestly firmer into Russia-Ukraine talks in Turkey, which is guided for this afternoon.


• The morning’s strength comes in consolidation from Wednesday’s losses, also with Putin absent from Russia’s delegation list.


• Though bears will be focusing on any further Trump commentary, which would be adding to remarks this morning, where he noted that he would attend talks “if appropriate”.

Gold: -0.6%

• Spot Gold is extending on recent losses with demand subdued as it sits below the USD 3,200/oz mark.


• The trend seen for most of this week remains intact, with the metal continuing to be hit by higher yields, particularly on the short end.


• The data slate is busy today, with Eurozone employment and GDP figures, NY Fed Manufacturing, US Jobless Claims, PPI, Retail Sales and Industrial Production; today's speaker slate includes Fed Chair Powell, who will give opening remarks at a framework review conference.

3M LME Copper: -1.0%

• Copper Futures are lower by a percent, mostly owing to a downbeat risk sentiment in APAC hours.


• It currently trades towards session lows of USD 9,467/t, after being modestly pressured around the time of Trump commentary.

15 May 2025 - 09:55- ForexGeopolitical- Source: Newsquawk