Oil Holds Near Lowest Level Since 2021 on Ukraine -2-

0848 GMT - Gold prices slip in early trading as investors book profits ahead of key U.S. data that could provide cues on the Federal Reserve's policy path next year. Futures in New York fall 0.7% to $4,305 a troy ounce, though prices remain near October's record highs supported by expectations of further easing and sustained investor demand. New York Fed President John Williams this week struck a balanced tone in his remarks following the Federal Open Market Committee decision, saying monetary policy is well placed heading into 2026, while Fed Governor Stephen Miran advocated for more rate cuts. Both officials indicated they are confident inflation will cool in coming months. Markets are now focused on delayed U.S. employment and inflation reports due later this week as they could shape expectations for the Fed's next move.([e-mail])

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Oil Extends Monday's Losses on Ukraine Talks Optimism

0834 GMT - Oil prices fall in early trading, extending the previous session's losses as negotiations to end the war in Ukraine progress. Brent crude is down 1% to $59.94 a barrel, while WTI declines 1.1% to $56.06 a barrel, its lowest level since 2021. The benchmarks have fallen 20% so far this year, pressured by prospects of an oversupplied market and softening demand. "Oil is on track for an annual decline as expectations of a growing surplus intensify, driven by OPEC+ restoring idled output and rising production elsewhere, with any potential easing of sanctions on Russia adding to downside risks," Soojin Kim from MUFG says. Adding to the pressure, the latest Chinese data showed economic momentum slowed broadly in November, with a marked weakening in consumer spending. ([e-mail])

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Iron Ore Rises, Supported by Solid Demand -- Market Talk

0306 GMT - Iron ore is higher in early Asian trading. With macroeconomic events largely priced in, iron ore trading has shifted back toward fundamentals, Nanhua Futures analysts say in a research note. Steel mill inventories are at low levels, suggesting restocking demand, the analysts write. Downside risks for iron ore prices appear limited, as shipments remain constrained, they add. The most-traded iron-ore contract on the Dalian Commodity Exchange rises 0.7% to CNY758.0 a ton. ([e-mail])

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Copper Edges Lower Amid Mixed Cues -- Market Talk

0218 GMT - Copper edges lower in early Asian trade amid mixed cues. While concerns over the global economy remain, renewed supply disruptions this year and robust demand have boosted sentiment, ANZ Research analysts say in a research note. China's November retail sales rose only 1.3% on year, the weakest since 2022. However, China's imports of copper have remained elevated as demand growth from sectors such as EVs and energy infrastructure has mitigated the falls in the manufacturing and property sectors, they say. U.S. demand has also been boosted by artificial-intelligence-related investment, they add. The benchmark three-month LME contract is down 0.1% at $11,637.50 a ton. ([e-mail])

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(END) Dow Jones Newswires

12-16-25 1036ET