Palm Oil Rises on Higher Soybean Oil, Crude Oil — Market Talk

Iron ore rises in early Asian trading, with the most-traded iron-ore contract on the Dalian Commodity Exchange up 1.2% at 774.00 yuan a ton. Global iron ore shipments have increased steadily this month, particularly from smaller miners, leaving China with relatively ample supply that is unlikely to change in the near term, Galaxy Futures analysts say in commentary. Meanwhile, Chinese steel demand from the property, infrastructure and manufacturing sectors has weakened in 4Q, with domestic end-use demand expected to remain soft in the medium term. Given the loose supply-demand balance and a significant shift in market fundamentals, further upside in prices is likely to be limited, Galaxy Futures says. (jason.chau@wsj.com)

Gold dipped to around $4,330 per ounce on Thursday but stayed near the record highs reached in October, as expectations of further US rate cuts and ongoing geopolitical risks supported the metal’s appeal.

Fed Governor Christopher Waller expressed backing for additional interest rate reductions while stressing that policymakers can move cautiously.

The comments follow US labor data showing further signs of cooling, with the unemployment rate rising to its highest level in four years, and November job gains were insufficient to offset October’s slowdown.

Market attention now turns to the delayed CPI report due later today.

Meanwhile, geopolitical tensions are mounting, as the US moved to halt all sanctioned Venezuelan oil shipments following last week’s tanker seizure and military deployment, while in Ukraine, Russian President Vladimir Putin reiterated his firm stance on territorial demands, even as Washington intensifies efforts to broker a diplomatic resolution.

Copper falls in Asian trading hours, with the three-month contract on the London Metal Exchange declining 0.5% to $11,676.00 a ton. Imminent U.S. economic data could drive the Federal Reserve's stance on monetary policy, ANZ Research analysts write in a note. Any further interest-rate cuts would be a tailwind for the sector, they say. Supply of the base metal could also tighten in the future. "Copper demand has been relatively strong, with China's imports elevated," they add. (megan.cheah@wsj.com)

Oil prices climb by more than 1% in early Asian trade amid ongoing geopolitical tensions. President Trump earlier this week ordered a "total and complete blockade" of all sanctioned oil tankers entering and leaving Venezuela. "Venezuela is completely surrounded by the largest Armada ever assembled in the History of South America," Trump posted on Truth Social, referring to U.S. warships, planes and thousands of troops deployed to the region. These moves threaten to disrupt a substantial amount of crude oil, ANZ Research analysts say in a research report. Front-month WTI crude oil futures are 1.7% higher at $56.87/bbl; front-month Brent crude oil futures are 1.5% higher at $60.55/bbl. (ronnie.harui@wsj.com)

Platinum increased to 1954.00 USD/t.oz, the highest since July 2008.

Over the past 4 weeks, Platinum gained 25.58%, and in the last 12 months, it increased 111.65%.

Brent crude oil futures climbed more than 1% toward $61 per barrel on Thursday, extending their rebound from a nearly five-year low, supported by rising geopolitical tensions.

The US has ordered a full shutdown of maritime traffic involving sanctioned oil tankers operating to and from Venezuela, following last week’s escalation in which US forces seized a blacklisted tanker off the country’s coast. Simultaneously, Washington is moving toward tougher sanctions on Russia’s energy sector in an effort to advance peace talks over Ukraine, raising concerns over potential global supply disruptions.

Meanwhile, EIA data showed that US crude inventories fell by 1.27 million barrels last week, marking a second consecutive decline and slightly exceeding expectations for a 1.1 million barrel draw.

Stocks at the Cushing, Oklahoma hub also posted their largest drop in nearly two months, although gasoline and distillate inventories increased.