EUROPEAN COMMODITIES UPDATE: Softer trade in crude amid a possible Zelensky–Putin meeting

Crude Oil: WTI Oct -0.9% Brent Oct -0.9%

• Softer trade following the Washington confabs between the US, Ukraine, EU, and NATO.
• Overall, there has been no breakthrough in yesterday's discussions, although talks may advance with a possible Zelensky–Putin meeting in two weeks, their first since the war began. The main obstacle remains Russia’s demand for full control of Donetsk and Luhansk, which Ukraine rejects.
• Despite the mild optimism, betting markets remain pessimistic, with Polymarket pointing to a 38% chance of a Russia-Ukraine ceasefire this year. It is still possible that Trump could impose sanctions if talks break down or if Russia goes on a renewed offensive on the ground during negotiations.
• On that note, Ukraine's Air Force said Russia launched 270 drones and 10 missiles during an overnight attack."Israeli media: The Chief of Staff will present today to the Minister of Defence the plan to occupy Gaza City", according to Al Arabiya
• WTI currently resides in a 62.05-62.68/bbl range while Brent sits in a USD 66.58-66.02/bbl range.

Precious Metals: Gold U/C, Silver U/C, Palladium -0.4%

• Mostly flat trade amid quiet markets and with little fallout seen in the yellow metal from the deliberations on Russia-Ukraine, as traders await a clearer hint of what will result from the talks.
• Price action this morning sees the precious metals complex eking mild gains, with spot gold trading under its 50 DMA (3,349.61/oz) in a USD 3,326.28-3,341.88/oz range.

Base Metals: 3M LME Copper +0.1%

• Flat/mixed trade amid the broader tentative mood across the markets.
• Iron ore prices fell on Tuesday with traders citing demand concerns from China. Dalian iron ore, however, only closed by 0.4% intraday.
• 3M LME copper prices reside in a USD 9,739.40-9,782.00/t range.