EUROPEAN COMMODITIES UPDATE: Crude takes a breather while base metals cheers risk appetite

Crude Oil: WTI Feb -0.3%/Brent Mar -0.3%

• Subdued trade in the crude complex as prices take a breather from yesterday's surge which saw WTI settle +USD 2.54/bbl and Brent +2.11/bbl amid the post-US CPI slide in the Dollar.


• Prices this morning have been trundling lower despite the constructive risk tone as DXY attempts to regain some composure and against the backdrop of ongoing geopolitics.


• Middle Eastern geopolitics has been mixed, with earlier reports of a Gaza hostage and ceasefire deal being reached and will be taking effect on 19th January; the deal outlines a six-week initial ceasefire phase that includes a gradual withdrawal of Israeli forces from central Gaza and the return of displaced Palestinians to northern Gaza.


• Thereafter, Israel's PM office says Hamas is reneging on the understanding and creating a last-minute crisis that prevents an agreement, according to N12 News.


• No move was seen in the oil complex at the time.


• Furthermore, desks flag that Colonial Pipeline’s line 1 is set to remain closed until Friday, which shut down due to a leak earlier in the week - with a capacity to carry some 1.5mln BPD of gasoline from the US Gulf Coast to the East Coast.


• WTI Feb resides in a USD 79.82-80.59/bbl range while Brent Mar trades in an 81.75-82.57/bbl parameter.

Nat Gas: Dutch TTF -1.6%

• European nat gas prices are softer today in-fitting with the broader energy market, with Feb contract under EUR 46.50/MWh.


• US President-elect Trump is to abolish the requirement for some LNG export permit renewals, according to Reuters sources.

Precious Metals: Gold +0.3%, Silver +0.7%, Palladium -0.9%

• Mixed trade in the precious metals complex with spot gold and silver continuing to benefit from the US CPI and mixed noise surrounding the Israel-Hamas ceasefire.


• Spot palladium pulls back following yesterday's hefty outperformance.


• Spot gold topped USD 2,700/oz and currently sits within a USD 2,690-2,706/oz range with the next level to the upside the 12th Dec peak (USD 2,726.29/oz)

Base Metals: 3M LME Copper +1%

• Firmer across the board as the complex continues to cheer the softer-than-expected US CPI alongside the constructive risk tone, which brought market expectations for Fed rate cuts back to pre-NFP levels.


• 3M LME copper topped USD 9,250/oz and resides in a USD 9,176.50-9,275.00/t

16 Jan 2025 - 10:00- MetalsData- Source: Newsquawk