EUROPEAN COMMODITIES UPDATE: Energy markets await JMMC/OPEC+; Metals tread water

Crude Oil: WTI Jul +0.6%, Brent Jul +0.6%

• Choppy trade once again in the crude complex as the clock ticks down to today's JMMC and OPEC+ meetings.


• OPEC+ will virtually convene its Joint Ministerial Monitoring Committee (JMMC) on Wednesday, with the full OPEC and OPEC+ meetings also set to take place following the JMMC.


• OPEC+ talks are set to begin at 14:00 BST/ 09:00ET, according to Reuters sources; Kpler's Bakr suggested 14:30 BST/ 09:30ET.


• However, the meeting of the eight OPEC+ countries conducting the voluntary cuts will now take place on May 31st as opposed to the originally scheduled June 1st.


• Market focus will largely be on the Saturday meeting, assuming no policy decision is front-run and announced at the Wednesday meeting.


• Delegates are reportedly discussing the prospect of a third consecutive output hike, according to Bloomberg sources, on May 22nd. Bloomberg sources suggest a potential 411k BPD increase for July is under consideration — three times the originally scheduled monthly hike — although no final decision has yet been reached.


• Aside from that, in geopolitics, US President Trump suggested that Russian President Putin is playing with fire, to which Russia's Medvedev said "I only know of one really bad thing-WWIII".


• Ahead, and aside from OPEC, traders will be eyeing the delayed Private Inventory release (due to US Memorial Day), whilst the FOMC minutes will also be released. Some sentiment-related action may also be seen from NVIDIA earnings, whilst commentary surrounding data centres could be pertinent for energy markets.

Precious Metals: Gold +0.6%, Silver +0.1%, Palladium +0.1%

• Modest upward tilt but with newsflow quiet in the run-up to the FOMC minutes, with trade updates also on the lighter side.


• Spot gold traded indecisively overnight and struggled to sustain the USD 3,300/oz status amid a firmer dollar.


• The yellow metal currently resides in a USD 3,291.70-3,323.89/oz range, well within yesterday's USD 3,285.25-3,350.09/oz parameter.

Base Metals: LME Copper +0.3%

• Modest upward tilt across base metals, albeit with the breadth of the market particularly narrow amid a lack of macro newsflow and ahead of the FOMC minutes.


• Copper futures overnight remained lacklustre and resumed the prior day's declines with price action not helped by the lack of conviction in its largest buyer.


• 3M LME copper remains north of USD 9,500/t in a USD 9,567.00-9,651.45/t.

28 May 2025 - 09:55- ForexEU Research- Source: Newsquawk