Brent crude (CO1:COM) prices experienced a decrease of -1.14% to $81.92 a barrel on Friday as a slowdown in global oil demand growth was predicted by the International Energy Agency. This downtrend countered the support from tense situations in the Middle East. The IEA’s forecast, which contradicted OPEC’s view, reduced its 2024 growth forecast. JPM Commodities Research noted that despite significant turnarounds in the United States, global refining utilization rates have remained surprisingly high, catching the market off-guard. According to the brokerage, projections suggest that product cracks will likely remain elevated through at least 3Q24.

JPM also stated that attacks on ships in the Red Sea are beginning to have a disproportionate impact on energy prices in Europe. Despite not resulting in any oil loss, disruptions in the region are becoming perceptible in refined product flows into Europe and regional product differentials.

Gold prices (XAUUSD:CUR) were on track for their second consecutive weekly decline as investors reevaluated the scale of expected rate cuts by the Federal Reserve, affecting the appeal of non-yielding bullion. Yet, prices held steady at $2,006.61 an ounce, following softer U.S. economic data. Federal Reserve Bank of Atlanta President Raphael Bostic remarked that there was no urgency to cut interest rates, given the strength of the US labor market and economy. Traders now see a 78% chance of a rate cut in June, according to the CME Fed Watch Tool. The market is eagerly anticipating the US producer price index, due at 1330 GMT.

On the other hand, among base metals, zinc, nickel, and aluminum prices traded positively, while copper hit a one-week high on Friday. Weaker-than-expected U.S. retail sales data raised hopes for an interest rate cut from the Federal Reserve in June. Though copper is set for a weekly gain, it is down nearly 3% this month due to concerns about demand from China, particularly its property sector, amidst muted activity during the Lunar New Year. Three-month copper on the London Metal Exchange reached its highest level since Feb. 8.

ING analyst Ewa Manthey highlighted that the struggling property sector, a primary driver of commodities demand, continues to weigh on market sentiment and is expected to remain weak throughout 2024. This suggests that there will not be a significant recovery in metals demand this year.

Elsewhere, among agriculture commodities, cocoa and wheat prices fell, while wheat gained.