The Commodities Feed Oil Falls as Optimism Builds Over US-Iran Deal

Oil prices have softened due to potential US-Iran diplomacy, while Aluminium has surged to a four-year high on supply constraints. Meanwhile, Russia's refinery issues and West African weather concerns are tightening diesel and cocoa markets respectively.

Key Takeaways

• 1.Oil prices are falling as market optimism grows regarding a potential US-Iran deal, despite continued closures of the Strait of Hormuz.
• 2.Aluminium reached a four-year high on the LME ($3,700/t) driven by Middle East supply disruptions and potential output curbs in China.
• 3.Russia is considering export curbs on diesel and jet fuel due to low refinery runs following Ukrainian strikes on infrastructure.

Table of Contents

• Energy – Oil under pressure
• Metals - Aluminium hits four-year high
• Agriculture - Cocoa climbs on tight supply expectations

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