4th April 2025
*Brent Crude*
Brent crude futures tumbled over 6.5% to below $66 per barrel, the lowest since August 2021, extending a two-day decline of 12.9%. Prices plunged as OPEC+ unexpectedly accelerated output increases, adding 411,000 barrels per day in May, far exceeding the initial 135,000 bpd plan. Despite oil being exempt from U.S. tariffs, trade tensions escalated after China imposed a 34% tariff on U.S. goods, raising concerns over economic growth and fuel demand. Brent is set for its worst weekly drop in six months.
*Dutch TTF Gas*
European gas prices fell over 8% to €36.3/MWh, the lowest since September 2024, as crude’s selloff and rising oil supply pressured global energy markets. With EU gas storage only 34.35% full, traders worry about meeting winter demand. Meanwhile, expectations of weaker Asian LNG demand and higher U.S.-China trade tariffs could divert more LNG to Europe, keeping prices under pressure.
*Iron Ore*
Iron ore futures fell to CNY 747.5/tonne as U.S. tariffs disrupted global markets and dampened steel demand. China’s mixed economic signals added uncertainty—while hot metal production and factory activity rose, the struggling property market weighed on construction demand. The TSI 62% Fe IO fines (SGX) fell 1.91% to $97.55 for May futures.
*Copper*
Copper prices plunged 6.35% to $8,774 (LME 3-month) as escalating trade tensions raised fears of a global slowdown. China announced a 34% tariff on U.S. goods and export controls on rare earths, retaliating against U.S. levies on major economies like China (54%), the EU (20%), Japan (24%), and India (27%). Although copper remains tariff-free, speculation over potential future duties had driven it to a record $5.2/lb in March, before retreating as no immediate action materialized.
