Trump-Putin Call: Energy Markets React and Chinese Oil Demand Falls

As the market digests the recent call between President Trump and President Putin, prices remain steady with ICE holding above US$65/bbl. The call did not result in any significant breakthroughs, with Trump mentioning talks between Russia and Ukraine to end the war, while Putin focuses on addressing the root causes of the crisis.

Concerns arise regarding further sanctions on Russia and the potential role of the US as a mediator in negotiations. Energy markets are closely watching for peace talks, as a deal could lead to easing sanctions against Russia.

On the other hand, Iranian nuclear talks face obstacles as the US demands a suspension of uranium enrichment, while Iran stands firm on its stance. Chinese data shows a decline in oil demand, coinciding with escalating trade tensions with the US.

In the metals sector, LME aluminium inventories surge, leading to a drop in prices. Chinese aluminium output reaches a record high, adding to the downward pressure on prices.

Meanwhile, US crops are progressing well, with planting at a good pace. This suggests a potential increase in corn supply for the upcoming season, which could keep prices under pressure.

Analysis

The recent Trump-Putin call had little impact on energy markets, with prices remaining stable. Concerns over Russian sanctions and Iranian nuclear talks continue to affect market sentiment. Additionally, Chinese oil demand has fallen, while aluminium inventories surge, leading to price declines in the metals sector.

On the other hand, US crop progress is positive, indicating a potential increase in corn supply. This could have implications for corn prices in the upcoming season. Overall, geopolitical tensions and supply dynamics continue to influence commodity markets, highlighting the importance of staying informed for investors and traders alike.