MARKET MOVEMENTS:
— Brent crude oil is down 0.2% to $63.13 a barrel.
— European benchmark gas is up 1.1% to 27.38 euros a megawatt-hour.
— Gold futures are up 0.4% to $4,261.70 a troy ounce.
— LME three-month copper futures are up 1.3% to $11,579.50 a metric ton.
TOP STORY:
Copper Hits Fresh Record on Fears of Global Supply Squeeze
Copper prices climbed to a fresh record on Friday, driven by fears of a global supply shortage as traders stockpile in the U.S. and optimism around interest-rate cuts by the Federal Reserve next week.
In afternoon trading in Europe, futures on the London Metal Exchange rose 1.6% to $11,617 a metric ton after hitting an intraday high of $11,705 a ton. Prices have risen more than 32% so far this year.
"While supply disruptions have provided the necessary fuel, the foundation of our bullish outlook for the coming quarters is built on severely dislocated global inventory and the continued pull of refined copper to the U.S.," analysts at J.P.Morgan said.
OTHER STORIES:
World Food Prices Fall for Third Straight Month
Global food prices fell in November for the third consecutive month, driven by lower prices for all major staple foods except cereals, the Food and Agriculture Organization of the United Nations said.
The FAO's food price index--which tracks a basket of widely traded food commodities--averaged 125.1 points in November, down 1.2% from October's revised reading and more than 20% below the March 2022 peak after Russia's invasion of Ukraine.
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Equinor Makes North Sea Gas Discoveries
Equinor made two new discoveries of gas and condensate in the North Sea, the Norwegian energy major's largest discoveries so far this year.
Initial estimates indicate the reservoirs could contain 30 million to 110 million barrels of recoverable oil equivalent, the company said Friday.
MARKET TALKS:
European Gas Prices Poised for Weekly Loss on Ample Supplies -- Market Talk
1349 GMT - European natural-gas prices are on track for a steep weekly loss on signs of softer demand and robust supply. The benchmark Dutch TTF contract is up 1% to 27.36 euros a megawatt hour in afternoon trade, but has fallen more than 5% on the week. "Milder and windier weather are forecast for next week, dampening the need for gas for power and heating," ANZ analysts say. "Warmer conditions are also set to linger across the continent through mid-December." EU inventories are currently 74% full, below five-year seasonal average of 85%. However, strong exports from Norway and ample LNG supply are further easing concerns about storage levels during the heating season. (giulia.petroni@wsj.com)
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Palm Oil Ends Higher, Supported by Rival Oils' Strength -- Market Talk
1019 GMT - Palm oil closed higher, supported by overnight strength in rival oils and potential supply disruptions from flooding in Malaysia, say Kenanga Futures analysts in a note. Potential short covering ahead of the weekend also likely provided upside to palm oil prices, they add. They peg support and resistance levels for the February futures contract at 4,075 ringgit a ton and 4,195 ringgit a ton, respectively. The Bursa Malaysia Derivatives contract for February delivery ended 47 ringgit higher at 4,152 ringgit a ton.(megan.cheah@wsj.com)
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Gold Rises Ahead of Key U.S. Inflation Data -- Market Talk
0916 GMT - Gold prices rise on a softer U.S. dollar, with investors turning their focus to a key U.S. inflation print due later on Friday. Futures in New York are up 0.2% to $4,250.10 a troy ounce, while spot gold rises 0.1% to $4,208.77 an ounce. The U.S. dollar index--which measures the greenback against a basket of other major currencies--is flat at 98.97. "Gold managed to hold its ground, after the latest U.S jobs data did little to sway expectations of a Fed interest rate cut next week," ANZ analysts say. Traders are now waiting for PCE index data for more cues on the path of interest-rate cuts. A lower-interest-rate environment typically benefits non-yielding assets such as gold. Meanwhile, silver futures rise 1.7% to $58.49 an ounce, while platinum is up 0.5% to $1,669.10 an ounce. (giulia.petroni@wsj.com)
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Oil Poised for Weekly Gains on Geopolitical Risks
0908 GMT - Oil prices are on track for weekly gains, buoyed by diminishing prospects of a Russia-Ukraine peace deal in the short term and growing tensions between the U.S. and Venezuela. "Conflict-related risk premia are providing an offset to the oversupply that has been building in 4Q 2025 and which we expect to spill over into the new year," analysts at BMI, a unit of Fitch Solutions, say. "Despite the increasingly bearish fundamental narrative that has taken shape over recent months, both prices have shown a significant degree of resilience." Brent crude is flat at $63.23 a barrel, while WTI slips 0.1% to $59.62 a barrel in early trading. The benchmarks are up 1.5% and 1.8% on the week, respectively. (giulia.petroni@wsj.com)
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U.K. Miners Climb in Early Trading -- Market Talk
0848 GMT - U.K. miners rise in early European trading after a bumper week for commodities. Antofagasta and Anglo American lead the early climbers, jumping 2.7% and 2.6%, respectively. Copper climbed to record highs this week, spurring red metal-focused miner Antofagasta higher. Glencore rises 1.5%. Cautious buying ahead of next week's Federal Reserve interest rate decision and geopolitical tensions are a catalyst for miners, Interactive Investor analyst Richard Hunter writes. (josephmichael.stonor@wsj.com)
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Changes at Rio Tinto an Evolution, Not Revolution -- Market Talk
0409 GMT - The strategy of Rio Tinto's new CEO "is evolutionary, not revolutionary," according to UBS analysts. In a note, they highlight the miner's plans to improve Ebitda by raising volumes and reducing costs. They say 2026 guidance is broadly as expected and don't expect a material change to earnings forecasts. The analysts reiterate a neutral rating on the stock. "In our opinion, the risk-reward for Rio is improving, with commodity prices supportive and operational performance improving." UBS raises its target to A$138 from A$130. Rio is down 1.5% in Sydney at A$138.45. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
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Rio Tinto Strategy to Give Long-Run Earnings a Boost; Near-Term Estimates Under Pressure -- Market Talk
0405 GMT - Rio Tinto's first investor briefing under new CEO Simon Trott broadly met market expectations, according to Barclays analysts. They say Trott's plans to make Rio "simpler" and "sharper" could result in 2030 Ebitda being roughly US$5 billion higher than Barclays has forecast, and about US$7 billion higher than market consensus. That said, "market expectations were arguably elevated in the run-in" to the briefing and "softer production guidance for 2026 versus consensus is likely to see near-term consensus estimates decline," the analysts say in a note to clients. Rio is down 1.4% in Sydney at A$138.62. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
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Gold Likely to Sustain Strong Rally in 2026 -- Market Talk
0405 GMT - Gold is likely to sustain its strong trend-like rally in 2026, UOB's Global Economics & Markets Research team says in a report. "The case for gold as a safe haven to diversify one's portfolio remains strong," UOB writes. There is still strong accumulation of gold inventory on key exchanges globally, while purchases of gold-ETFs remain strong. Expectations of a Fed rate cut next week is also a key near-term positive driver for the precious metal, UOB says. UOB maintains its positive outlook for gold and forecasts prices for 1Q, 2Q, 3Q, 4Q of 2026 at $4,300/oz, $4,400/oz, $4,500/oz and $4,600/oz, respectively. Spot gold is flat at $4,209.10/oz.(amanda.lee@wsj.com)
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Iron Ore Prices Fall Amid Weak Demand, Strong Supply -- Market Talk
0306 GMT - Iron ore prices are lower in early Asian trade, weighed by weak demand and strong supply. Demand for iron ore is getting more subdued while its supply remains at a high place, which have pressured prices, Baocheng Futures analysts write in a note. The most actively traded January iron ore contract on the Dalian Commodity Exchange is 1.2% lower at CNY784.0 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
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Copper Rises Amid Supply-Squeeze Speculation -- Market Talk
0217 GMT - Copper gains in Asian trade, with the three-month contract on the LME adding 0.4% to $11,499.00 a metric ton. The metal has gained more than 7% since the start of November and is up 30% since 2025 began, likely on ongoing supply disruptions, ANZ Research analysts say in a note. A huge withdrawal of metal from LME warehouses earlier this week fuelled speculation of a supply squeeze, they add. Still, they note that recent weak economic data in China could suggest that the market shortage isn't as large as expected. (megan.cheah@wsj.com)
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
December 05, 2025 09:10 ET (14:10 GMT)
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