EUROPEAN COMMODITIES UPDATE: Crude remains subdued whilst metals are underpinned by the dollar

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

• Another subdued session for the crude complex despite the slide in the dollar and a revision higher in German Q1 GDP, with sentiment capped by yesterday's source reports that OPEC+ members are discussing whether to agree to another output hike of 411k BPD in July.


• In other news, the US-Iran nuclear talks will be going ahead today from 12:00 BST/ 07:00 EDT, although views heading into the meeting are rather pessimistic, with Iran suggesting any deal which includes zero enrichment will not go ahead.


• Elsewhere in geopolitics, Israeli PM Netanyahu said he is ready for a temporary ceasefire in Gaza to secure the release of hostages.


• Regarding Russia, a European official said the US was not convinced about lowering the G7 oil price cap during the G7 finance meeting, as the US position was that oil prices are going down and already hurting Russia, but does not exclude the idea of lowering the price cap level, and discussions will continue.


• Regarding trade, US President Trump and Chinese President Xi have not spoken since the Geneva agreement, according to CNN. Meanwhile, US President Trump is pushing the EU to cut tariffs or face extra duties with US negotiators to tell Brussels they expect unilateral concessions, while USTR Greer is preparing to tell EU counterpart Sefcovic that the recent "explanatory note" falls short of US expectations, according to FT.


• WTI Jul resides in a USD 60.55-60.96/bbl range while its Brent counterpart trades between USD 63.83-64.22/bbl - both well within yesterday's parameters.

Precious Metals: Gold +1.0%, Silver +0.5%, Palladium -0.3%

• Precious metals are mixed with the yellow metal underpinned by the softer dollar and ongoing tariff uncertainty.


• Spot gold gradually rebounded from yesterday's trough and returned to above the USD 3,300/oz level in APAC hours amid the cautious risk tone.


• In trade/tariff newsflow, US President Trump and Chinese President Xi have not spoken since the Geneva agreement, according to CNN. Meanwhile, US President Trump is pushing the EU to cut tariffs or face extra duties with US negotiators to tell Brussels they expect unilateral concessions, while USTR Greer is preparing to tell EU counterpart Sefcovic that the recent "explanatory note" falls short of US expectations, according to FT.


• Spot gold currently resides in a USD 3,287.07-3,334.46/oz range, within yesterday's USD 3,279.23-3,345.47/oz parameter.

Base Metals: 3M LME Copper +0.6%

• Copper futures traded rangebound and were kept afloat alongside the mildly positive sentiment during the Asia-Pacific trade.


• Futures are underpinned in early European trade amid the softer dollar alongside the current positive tilt in risk, whilst pertinent newsflow remains light.


• 3M LME copper remains north of USD 9,500/t in a USD 9,502.80-9,598.95/t range.

23 May 2025 - 09:50- ForexGeopolitical- Source: Newsquawk