EUROPEAN COMMODITIES UPDATE: Crude follows on from Thursday’s selling, XAU choppy amid debt concerns

Crude Oil: WTI/ Brent -1.1%,

• 
  Crude benchmarks continue to follow on from Thursday’s selloff, with WTI extending below USD 57/bbl while Brent slowly approaches the USD 60/bbl floor. In recent times, USD 60/bbl in the global benchmark has been a point of potential “intervention” for oil-producing countries because it is often near the cost of production for many producers. However, many think this floor can be breached as OPEC+ shifts from defending price levels to protecting market share.


• On geopolitics, US President Trump stated that great progress was made in the call with Russian President Putin, and that high-level advisors will meet in the coming week. This weighed on crude benchmarks late in Thursday’s session.


• In addition to geopolitical news, oil inventories built for the third straight week, with a build of 3.524mln vs expected 0.288mln. This added to the downside pressure.


• In the Middle East, Israeli Foreign Minister said Israel is committed to Trump’s plan but states Hamas is violating the agreement by failing to return 19 dead hostages. This adds to comments from US President Trump that Hamas will have to kill them.

Precious Metals: XAU +0.2%, XAG -0.2%

• 
  Spot XAU oscillating at ATHs as markets consolidate following a broad risk-off move in Thursday’s session. The yellow metal peaked at USD 4,380/oz before falling to a trough of USD 4,278/oz and is currently trading within the day’s range.


• Both government and private-market debt’s safety is increasingly coming under scrutiny with recent news that two US regional banks announced exposure to loans tied to fraud.


• VIX has also reached the 28 price level, a level not seen since the tariff news in early April, which could spur more flows into safe-haven assets.

Base Metals: 3M LME Copper -1.6%

• 
  Base metals are slipping due to concerns of credit quality, as mentioned above, and renewed tensions between the US and China. 3M LME Copper peaked at USD 10.64k/t before falling throughout the APAC session to a low at USD 10.49k/t. Currently, the red metal is trading at its low and extending its range.

17 Oct 2025 - 09:55- ForexGeopolitical- Source: Newsquawk