U.S., Iran Meet in Rome With Nuclear Talks Under Strain -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is down 0.4% to $64.16 a barrel.

--European benchmark gas is down 0.2% at 36.27 euros a megawatt-hour.

--Gold futures are up 1.5% at $3,345.40 a troy ounce.

--LME three-month copper futures are up 0.3% to $9,553 a metric ton.

TOP STORY:

U.S., Iran Meet in Rome With Nuclear Talks Under Strain

ROME-U.S. and Iranian officials began a fifth round of nuclear negotiations Friday, with Tehran warning that talks could collapse if the two sides can't overcome a pivotal clash over the shape of a deal.

Washington insists that Tehran can't continue to enrich uranium under a deal, warning that Iran's ability to do so opens the way for the country to ultimately attain a nuclear weapon, which President Trump has vowed to prevent.

Iranian officials presented a united front this week, insisting that Tehran won't bend its longstanding red line that it retain domestic enrichment. Iran spent days wavering over whether to attend the talks in Rome at all.

OTHER STORIES:

Fortescue Energy CEO to Resign in Executive Overhaul

Fortescue said the head of its energy arm, Mark Hutchinson, would step down and that Dino Otranto, who leads the miner's metals business, will assume an expanded role.

The Australian iron-ore producer announced the executive changes late Thursday in an overhaul that includes the departure of Chief Operating Officer Shelley Robertson.

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Nuclear-Industry Stocks Get Boost After Report Says Trump Will Sign Orders to Jumpstart Field

Nuclear-industry stocks were trading higher after Reuters reported that President Trump is expected to sign executive orders by as soon as Friday that aim to jumpstart the nuclear-energy industry.

The report, which cited sources familiar with the matter, said the orders would attempt to ease the regulatory process on approvals for new reactors, as well as strengthen fuel supply chains.

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Vermilion Energy to Divest Saskatchewan, Manitoba Assets for C$415M

Vermilion Energy has agreed to sell its oil-producing assets in Saskatchewan and Manitoba for 415 million Canadian dollars ($299.5 million) as it looks to focus more on Western Canada and Europe.

The Calgary, Alberta-based energy company said Friday that it has entered into a definitive agreement to sell the assets, but didn't identify the buyer. Proceeds from the sale are expected to strengthen Vermilion's balance sheet and provide flexibility for its core operations in Western Canada and Europe, the company said.

MARKET TALKS:

Grains Lower After Trump Threatens EU Tariff -- Market Talk

0915 ET - CBOT grain futures are lower pre-market, after President Trump issued a new tariff threat via Truth Social targeting the EU. "Beans were quiet on the overnight, then the tariff news about Europe hit the newswire, and beans dropped to 10 cents lower," says Naomi Blohm of Total Farm Marketing. The threat of tariffs have traders preparing for risk ahead of the long holiday weekend. Most-active corn is down 0.8%, soybeans off 0.8%, and wheat loses 0.1%. ([e-mail])

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Oil Futures Extend Losing Streak -- Market Talk

0910 ET - Oil futures are lower for a fourth consecutive session with trade concerns back in the mix as President Trump threatens the EU with a 50% tariff starting June 1. That's the same day that OPEC+ is due to meet to discuss July output levels amid expectations the group will increase its targets by another 411,000 barrels a day. "The combination of fiscal uncertainty and potential OPEC+ production increases is currently capping oil's recovery prospects," Pepperstone strategist Quasar Elizundia says in a note. WTI is down 1.1% at $60.51 a barrel and Brent is down 1.1% at $63.73. ([e-mail])

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Oil Pressured by Trade, OPEC+ Supply Hike Concerns -- Market Talk

1226 GMT - Oil prices continue to decline as concerns over global trade tensions and excess crude supply weigh on sentiment. Brent crude falls 1% to $63.74 a barrel, while WTI is down 1.1% to 60.50 a barrel after President Trump said he is recommending a 50% tariff on goods from the EU starting on June 1. Meanwhile, traders are increasingly worried about next week's OPEC+'s meeting, with many now expecting another large output hike in July. The move "would threaten an even greater supply surplus on the oil market," says Barbara Lambrecht, commodity analyst at Commerzbank Research. "This is because there are no signs of a revival on the demand side." ([e-mail])

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Gold Rises 1.7% After Trump's Fresh Tariff Threat -- Market Talk

1220 GMT - Gold prices climb in afternoon trade after U.S. President Trump threatened the EU with fresh tariffs, fueling market uncertainty and increasing demand for safe-haven assets. Futures are up 1.7% at $3,350.60 a troy ounce and on track for weekly gains of nearly 4%. Trump said in a Truth Social post he is recommending a 50% tariff on the EU starting on June 1, complaining that trade negotiations have stalled. Gold--which is considered a safe asset amid geopolitical and economic uncertainties--is also supported by a weaker U.S. dollar, broader geopolitical uncertainties and the U.S.'s fiscal and economic outlook. "Without a fundamental shift in U.S. fiscal policy, the implications of rising borrowing costs and widening fiscal deficits means the U.S. is on an unstable fiscal policy path, which could lead to heightened market volatility," says Fawad Razaqzada, analyst at Forex.com. ([e-mail])

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Oil Pressured by Trade, OPEC+ Supply Hike Concerns -- Market Talk

1226 GMT - Oil prices continue to decline as concerns over global trade tensions and excess crude supply weigh on sentiment. Brent crude falls 1% to $63.74 a barrel, while WTI is down 1.1% to 60.50 a barrel after President Trump said he is recommending a 50% tariff on goods from the EU starting on June 1. Meanwhile, traders are increasingly worried about next week's OPEC+'s meeting, with many now expecting another large output hike in July. The move "would threaten an even greater supply surplus on the oil market," says Barbara Lambrecht, commodity analyst at Commerzbank Research. "This is because there are no signs of a revival on the demand side." ([e-mail])

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OPEC+ Expected to Keep Current Output Hikes Pace Through 3Q -- Market Talk

1153 GMT - OPEC+ is expected to maintain its current pace of oil production increases through the third quarter of the year, says Capital Economics' David Oxley. The cartel and its allies will then continue adding output at a slower rate in the fourth quarter and into 2026, leading to a significant surplus and pushing Brent to $50 a barrel by the end of 2026, according to the economist's projections. "Kazakhstan's recalcitrance will continue to add a touch of melodrama to proceedings," he says. "But the key point is that OPEC+'s push to pump more oil has now surely moved beyond a desire to punish overproducers into a situation where the key motivation is regaining lost market share." ([e-mail])

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Palm Oil Edges Higher Amid Soybean Oil Strength, Bargain Hunting -- Market Talk

1020 GMT - Palm oil ended slightly higher amid soybean oil's gains overnight and bargain hunting activities after a recent slump. Palm oil rose after the strong recovery seen in rival soybean oil, which erased most of its earlier losses, Kenanga Futures said in a research note. However, gains were likely limited by a firmer Malaysia ringgit, which could dampen export competitiveness, it added. Kenanga sets palm oil's support and resistance levels at 3,780 ringgit and 3,950 ringgit, respectively. The Bursa Malaysia Derivatives contract for August delivery ended 7 ringgit higher at 3,827 ringgit a ton. ([e-mail])

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OPEC+ Expected to Make Another Super-Sized Output Hike, DNB Says -- Market Talk

0906 GMT - OPEC+ is expected to make another large output hike for the third straight month in July as Kazakhstan continues to exceed quotas, according to analysts at DNB Markets. "Kazakhstan continues to overproduce massively above its OPEC+ quota, and Saudi cannot walk back on its threats of punishing the cheaters without losing credibility, so it leaves Saudi with no choice," Helge Andre Martinsen and Tobias Ingebrigtsen say. Key members of the OPEC+ group are set to meet on June 1 to discuss July production levels after announcing an increase of 411,000 barrels a day for both May and June--a move widely interpreted as an effort to pressure over-producing members by pushing prices lower. ([e-mail])

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Aluminum Price to Be Supported by Supply Growth Slowdown, ANZ Says -- Market Talk

0855 GMT - Aluminum prices could find support from tightening supply, even as trade tensions continue to cloud the broader market outlook, according to ANZ. While President Trump's tariffs add to the uncertainty, demand for the metal remains robust, with China continuing to increase infrastructure spending and investment in the energy transition. However, output growth is slowing due to delayed projects, smelter restarts and alumina shortages. Output outside China is expected to see only marginal gains, making 2025 the weakest year for global supply growth since 2019, analysts at the firm say. "We think this should protect the downside for aluminium prices near current levels." LME three-month aluminum currently trades 0.3% higher at $2,463 a metric ton. ([e-mail])

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Gold Set for Weekly Gain Amid Softer Dollar, U.S. Fiscal Concerns -- Market Talk

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05-23-25 1011ET