OPEC Signals Cautious Optimism on Trade, Holds -2-

0949 GMT - Base metal prices rise, with LME three-month copper up 0.1% at $9,631.0 a metric ton and LME three-month aluminum up 1.2% at $2,523.50 a ton. Copper prices on the U.S. commodities exchange Comex are trading at a premium of just 10%-11% over LME prices, down from a peak of 18%, Morgan Stanley analysts say in a note. This likely reflects increased imports ahead of a potential tariff, large U.S. inventory builds and macroeconomic uncertainty, MS says. Any tariffs should eventually reflect in the prices, but this might not be immediate if spot markets have excess material to digest first, analysts write. Equivalent steel and aluminum tariffs are set at 25%, and a copper tariff would likely be set at this level, too, MS adds. ([e-mail])

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Gold Futures Flat as Weak Inflation Offsets Monday Selloff -- Market Talk

0813 GMT - Gold futures trade steady after a sharp selloff in Monday's session and weaker-than-expected U.S Consumer Price Index data on Tuesday. Futures are flat at $3,244.10 a troy ounce. The precious metal sold off sharply at the beginning of the week as the U.S.-China trade agreement spurred risk-on sentiment, then broadly stabilized on Tuesday as the latest U.S. inflation data increased optimism for interest-rate cuts later this year, ANZ Research analysts say in a note. Lower interest rates typically increase the appeal of non-interest bearing bullion. U.S. inflation rose less that expected in April amid tame prices for clothing and new cars, leading to a U.S. dollar selloff--further enhancing the appeal of gold as an alternative safe-haven asset, analysts add. ([e-mail])

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Oil Dips Slightly After Surge -- Market Talk

0752 GMT - Oil prices retreat but remain near their highest levels since late April, supported by the U.S.-China trade truce and a new round of U.S. sanctions against Iranian oil. Brent crude and WTI both fall 0.2% to $66.49 and $63.53 a barrel, respectively, after settling more than 2% higher in the previous trading session. Prices were boosted by a weaker dollar after cooler-than-expected U.S. consumer price data and U.S. sanctions on more than 20 companies alleged to be shipping Iranian oil to China. Meanwhile, reports citing figures from the American Petroleum Institute ahead of official EIA figures say U.S. crude stockpiles rose by 4.3 million barrels last week, above market expectations. ([e-mail])

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Iron Ore Gains on U.S.-China Trade Tensions Easing -- Market Talk

0311 GMT - Iron ore futures are higher in the early Asian trade as concerns of weaker demand ease following the de-escalation of the trade war between the U.S. and China, say ANZ Research analysts in a note. Around 10% of China's steel output is exported to overseas markets, which were at risk given U.S.-China trade tensions, they note. With traders' confidence lifted, the futures in Singapore broke above US$100 per ton for the first time in over a month, they say. Tightening supplies are back in focus, they add. The most-traded iron ore contract on the Dalian Commodity Exchange is up 1.7% at CNY732.00 a ton. ([e-mail]; @ivy_jiahuihuang)

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Malaysia's Palm Oil Stocks May Rise 15% in May -- Market Talk

0100 GMT - Malaysia's palm oil stocks may rise 15% on month to 2.15 million tons in May, adding pressure on CPO prices, say CIMB Securities analysts Ivy Ng Lee Fang and Lim Yue Jia in a note. They expect the CPO price to range between MYR3,700/ton and MYR4,000/ton in May. While Indonesian biodiesel demand offers some support, rising production and weaker crude oil prices could drag 2Q CPO prices, they say. CIMB maintains its 2025 CPO price forecast at MYR4,200/ton, compared with the four-month average of MYR4,609/ton. CIMB downgrades Malaysia's agriculture & forestry sector's rating to neutral from overweight, following its recent downgrade of SD Guthrie's rating to hold from buy due to limited near-term catalysts. It keeps a buy rating on IOI Corp. ([e-mail])

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(END) Dow Jones Newswires

05-14-25 1156ET