SunSirs: Commodities Roundup: Oil Prices Largely Steady, Copper Edges Lower, Gold Falls
Oil prices remained largely steady as the market weighed data showing a decline in U.S. crude inventories against the prospects for U.S.-Iran peace talks. Copper edged lower and gold fell as traders continued to monitor developments in the Middle East.
Crude Oil: Prices Largely Unchanged as Market Balances U.S. Inventory Decline and Prospects for U.S.-Iran Talks
Oil prices remained largely unchanged as traders weighed signs of a sharp decline in U.S. inventories against the prospect of renewed U.S.-Iran negotiations to end the conflict.
WTI was essentially flat, closing near $91 per barrel, roughly returning to levels seen before talks broke down over the weekend.
Sources familiar with the matter said Washington and Tehran are considering extending the ceasefire, set to expire next Tuesday, by two weeks to buy more time to reach an agreement.
Oil prices rose earlier as data released Wednesday by the U.S. Energy Information Administration (EIA) showed declines in crude and key refined product inventories.
This key data broke the thin trading pattern as investors weighed conflicting signals from the White House regarding the direction of the war.
U.S. Treasury Secretary Bessent reiterated that the United States will not extend the general license allowing the temporary sale of certain Russian and Iranian crude oil.
“Despite a slight rebound in the dollar and oil prices, the market still appears strongly inclined toward a positive outcome,” said Fawad Razaqzada, a market analyst at Forex.com. “However, it seems a bit early to factor in a smooth resolution of the conflict.”
May WTI rose 1 cent to settle at $91.29 per barrel.
June Brent rose 14 cents to settle at $94.93 per barrel.
Base Metals
Copper prices edged lower as traders focused on the prospect of potential peace talks between the U.S. and Iran.
According to sources familiar with the matter, the U.S. and Iran are considering extending the ceasefire, set to expire next Tuesday, by two weeks to buy more time to advance peace agreement negotiations.
Since the conflict began, prices for most base metals have fluctuated sharply, with the initial decline driven by market concerns over slowing economic growth. Market risk appetite rebounded following last week’s provisional ceasefire agreement, and reports that Washington and Tehran are seeking to arrange a second round of negotiations further boosted market sentiment.
At the close, LME copper fell 0.3% to $13,247.50 per ton.
LME aluminum futures rose 1.6% to $3,621.50 per ton.
LME nickel futures fell 0.4% to $18,133 per ton.
LME zinc futures rose 1.6% to $3,397 per ton.
LME tin futures fell 1.4% to $49,606 per ton.
LME lead futures rose 1.6% to $1,965.50 per ton.
Precious Metals
Gold fell as traders assessed optimistic expectations that the war in the Middle East would be resolved through negotiations.
Gold prices fell as much as 1.1% to $4,786.54 per ounce, giving up earlier gains.
Oil prices fluctuated on Wednesday but remained below $100 per barrel, while the U.S. dollar index weakened slightly. Concerns over rising consumer prices prompted traders to bet that central banks would keep interest rates steady or even raise them for longer, putting pressure on non-interest-bearing gold.
Dilin Wu, a research strategist at Pepperstone Group Ltd., said, “The market is effectively caught in a tug-of-war between expectations of a de-escalation in the conflict and unresolved inflationary pressures.”
As of 4:59 p.m. ET, spot gold was down 1% at $4,791.04 per ounce.
Spot silver was down 0.7% at $78.9637 per ounce.