EUROPEAN COMMODITIES UPDATE: Marginal gains into numerous key risk events

WTI/Brent: +0.3%/+0.4%

• The crude complex began the day with a constructive mood, attempting to claw back Wednesday’s hefty energy-specific losses.


• Specifically for price action, WTI and Brent reside within narrow USD 62.50-63.15 and 64.60-65.25/bbl bounds, each looking to test the USD 63 and USD 65/bbl marks respectively.


• Turning back to yesterday, Bloomberg sources said Saudi Arabia wants OPEC+ to continue supply hikes by “at least” 411k BPD in August and potentially September, as it aims to increase its market share and to take advantage of peak demand during the northern hemisphere summer.


• Additionally, a larger-than-expected build in EIA weekly stocks for gasoline and distillates (which preceded the Bloomberg report) also fuelled the downside.


• In geopolitics, US President Trump spoke with Russian President Putin, a call which lasted over an hour. Trump noted that it was a good conversation, but not one that would lead to peace, most likely due to Putin's comments, who vowed to respond to the recent attacks. For reference, Dutch TTF is firmer by 1.5%.

Gold: +0.1%

• Spot gold, while modestly in the green, is underperforming within the precious metals space. The driver for this appears to be a consolidation in auto-related metals (palladium, silver) after the Rare-Earth rhetoric smelted gains yesterday.


• This morning, price action has been lacklustre, as it looks to a packed docket, including the ECB, a Trump-Merz meeting, US data and a number of speakers ahead.


• Ahead of these events, the environment seems unfavourable for the yellow metal, with equities looking to build on gains and a firmer USD (DXY +0.1%).


• XAU/USD currently trades at session highs within USD 3,361.27-3,384.11/oz parameters.

3M LME Copper: +0.5%

• Copper looks to build on the prior session’s gains, despite mixed Caixin PMIs, which showed the composite slip into contractionary territory, and services remain afloat, ticking up moderately.


• The aforementioned firmer USD is looking ahead to US data, including US Jobless Claims, Challenger Layoffs and US International Trade.


• The industrial resides within a USD 9,622.65-9,692.2/t range.

05 Jun 2025 - 10:15- ForexEU Research- Source: Newsquawk