EUROPEAN COMMODOTIES UPDATE: Crude briefly boosted on reports of a drone attack on Iraq's Kurdistan oil fields

WTI/Brent: +0.1%/+0.1%

• WTI and Brent held a negative bias throughout the European morning, up until a geopolitical update. Al Arabiya reported of a drone attack on the Taouki oil field (80k bpd) in Iraq’s Kurdistan region. An update which has lifted the crude benchmarks more concertedly into the green, with upside of c. USD 0.30/bbl on the session for WTI and Brent though they remain a similar magnitude from respective overnight highs at USD 66.99/bbl and USD 69.01/bbl.


• However, this upside has proved relatively short-lived with the benchmarks retracing back to near-enough unchanged at the time of publication. Potentially also weighed on by a NBC report that the US strike on Iran set back the Fordow nuclear facility by two years; furthermore, Trump is said to have rejected a plan for more comprehensive strikes.


• The day’s geopolitical updates have also included some very hawkish comments via Russia's Deputy Chairman of the Security Council Medvedev, who said Russia should respond to the West to full extent, with preventative strikes if needed, via Tass.


• The broader geopolitical backdrop remains tumultuous, with reports on Wednesday suggesting that Israel has continued to strike Syria despite a ceasefire announcement. Elsewhere, in Kurdistan; the region's petroleum association said the majority of member companies have announced suspension of production following the recent strikes.


• Brent Sept’25 currently trades around USD 68.50/bbl in a USD 68.34-69.01 range, which is well within the prior day’s confines.

Gold: -0.4%

• Precious metals are broadly in the red, with losses all generally to a similar extent as each other. Spot gold traded rangebound overnight, finding some footing after extending higher on Wednesday amid reports that US President Trump would fire Chair Powell. This morning, the yellow-metal has traded with a downward bias thanks to the firmer Dollar and positive risk-tone across European equities.


• Price action today has been fairly muted, with XAU trading in a USD 3,325.10-3,351.11 range, which is within Wednesday’s confines. Currently trading around its 21 DMA (3,332.93); low for the day just about matches its 50 DMA (3,323.35).

Base Metals: -0.1%

• Base metals hold a negative bias, in part due to the firmer Dollar. 3M LME Copper posts very mild losses, in continuation of the rangebound trade seen overnight amid the somewhat mixed risk appetite in APAC trade.


• Analysts at ANZ, speaking on copper, write that consumers are likely to draw on existing stockpiles which may pressure COMEX copper prices in the short term.


• 3M LME Copper is incrementally in the red and trades in a USD 9,593.05-9,643.9/t range.

17 Jul 2025 - 10:20- ForexGeopolitical- Source: Newsquawk