EUROPEAN COMMODITIES UPDATE: Relatively contained price action as traders await macro updates ahead of Easter break

Crude Oil: WTI May +0.9%, Brent Jun +0.8%

• Firmer trade with prices extending on yesterday's gains after the US issued fresh Iran-related sanctions targeting oil tankers, while Treasury Secretary Bessent noted that the Trump administration has made it clear that they will apply maximum pressure on Iran and disrupt the regime’s oil supply chain and exports.


• It was also reported that US President Trump waved off a planned Israeli strike on Iranian nuclear sites in favour of negotiating a deal with Iran to limit its nuclear program, according to the New York Times.


• Furthermore, positive omens are emanating from US trade talks with Japan and the UK, with US President Trump noting "big progress" on the former, whilst sources for the latter pointed to a potential deal in as little as three weeks - boding well for demand.


• Participants are winding down for the Easter break, as such volumes may be more anaemic than usual.


• WTI resides in a USD 62.61-63.51/bbl range while Brent sits in a USD 65.95-66.77/bbl parameter.


• Baker Hughes data is due to today, brought a day forward on account of the Good Friday holiday.

Precious Metals: Gold +0.5%, Silver +0.7%, Palladium +0.4%

• Softer price action across precious metals following yesterday's run higher.


• Commentary from Fed Chair Powell yesterday on tariffs was cautious, with the Chair suggesting that tariffs are even larger than in the Fed's upside estimates.


• Losses in the complex today could be attributed to profit-taking coupled with positive omens emanating from US trade talks with Japan and the UK (see above).


• Spot gold mildly pulled back after recently printing a fresh record high with the precious metal above the USD 3,300/oz level in a current 3,314.30-3,357.77/oz range - the top end being another record high.

Base Metals: 3M LME Copper -0.4%

• Copper futures were choppy but ultimately faded some of the recent gains as risk sentiment in its largest buyer lagged overnight.


• This price action continued into European trade, with newsflow relatively light as participants wind down for the Easter break.


• Copper miner BHP reported higher copper output but cautioned that a tariff war could slow the global economy and fracture world trade


• 3M LME copper resides in a 9,134.00-9,237.85/t range.


• Dalian iron ore ended daytime trade relatively flat with traders citing favourable near-term demand prospects being offset by trade tensions.

17 Apr 2025 - 10:10- ForexGeopolitical- Source: Newsquawk