EUROPEAN COMMODITIES UPDATE: Crude pressured amid reports of further OPEC+ output hikes

Crude Oil: WTI Jul -0.8%, Brent Jul -0.8%

• Crude futures were pressured overnight by the downbeat mood across markets and following bearish inventory data.
• Renewed pressure was seen during the European morning amid source reports that OPEC+ members are reportedly discussing whether to agree to another output hike of 411k BPD in July, via Bloomberg citing sources, although no agreement has been reached yet.
• In terms of geopolitics, Oman's Foreign Minister announced the fifth round of Iran-US nuclear talks will take place in Rome on May 23rd.
• Aside from that, sentiment continues to be downbeat across Europe, which, if all things equal, will likely cap upside potential. Flash PMI data this morning has also painted a sombre picture of Europe overall.
• WTI resides in a USD 60.37-61.75/bbl range while its Brent counterpart trades in a USD 63.67-65.03/bbl parameter.

Precious Metals: Gold U/C, Silver +0.1%, Palladium -1.9%

• Overall, there is mixed trade across precious metals with hefty underperformance in spot palladium as it tracks the downbeat sentiment across the auto sector.
• Spot gold trades flat now after edging higher in APAC trade to above the USD 3,300/oz level owing to a weaker dollar and US deficit concerns, alongside the fragile risk sentiment.
• Spot gold resides in a current USD 3,311.08-3,345.47/oz range after coming close to the 9th May peak of USD 3,347.62/oz.

Base Metals: 3M LME Copper -0.1%

• Base metals are mostly lower amid the broader downbeat risk profile, whilst Flash PMIs from Europe this morning were mixed but the commentary was mostly downbeat.
• Copper futures initially rebounded in APAC trade from the prior day's trough following the recent choppy performance and with prices helped by early resilience in its largest buyer China, although this price action later waned.
• 3M LME copper resides closer to the bottom end of a USD 9,495.65-9,579.20/t range at the time of writing.