Oil prices remained largely stable as the market weighed data showing a decline in US crude inventories against the prospects for US-Iran peace talks. Copper prices edged lower and gold declined as traders continued to monitor developments in the Middle East.
**Crude Oil: Prices Hold Steady Amid Inventory Draw and Peace Talk Prospects** Oil prices showed little change as traders balanced signs of rapidly declining US stockpiles with the possibility of renewed negotiations between the US and Iran to end the conflict. WTI crude finished essentially flat, settling near $91 per barrel, roughly returning to levels seen before weekend peace talks broke down. Informed sources indicated that Washington and Tehran are considering extending a truce, set to expire next Tuesday, by two weeks to allow more time for reaching an agreement. Oil prices had risen earlier after data released Wednesday by the US Energy Information Administration (EIA) showed a drawdown in inventories of crude and key refined products. This key data point broke a pattern of thin trading as investors assessed conflicting signals from the White House regarding the direction of the conflict. US Treasury Secretary reiterated that the United States will not extend a general license permitting 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 to price in a positive outcome," said Fawad Razaqzada, a market analyst at Forex.com. "However, it still seems a bit premature to fully price in a smooth resolution to the conflict." May WTI crude edged up by 1 cent, settling at $91.29 per barrel. June Brent crude gained 14 cents, settling at $94.93 per barrel.
**Base Metals** Copper prices dipped slightly as traders focused on the potential for peace negotiations between the US and Iran. According to people familiar with the matter, the US and Iran are considering extending a ceasefire, due to expire next Tuesday, by two weeks to allow more time for advancing talks on a peace agreement. Since the conflict began, prices for most base metals have experienced significant volatility. Initial price declines were driven by concerns over slowing economic growth. Market risk appetite recovered following last week's agreement on a temporary truce, and reports that Washington and Tehran are seeking to arrange a second round of talks further buoyed sentiment. At the close, LME copper was down 0.3% at $13,247.5 per metric ton. LME aluminum rose 1.6% to $3,621.5 per ton. LME nickel declined 0.4% to $18,133 per ton. LME zinc advanced 1.6% to $3,397 per ton. LME tin fell 1.4% to $49,606 per ton. LME lead increased 1.6% to $1,965.5 per ton.
**Precious Metals** Gold prices fell as traders assessed optimistic expectations that the Middle East conflict could be resolved through negotiations. Gold dropped as much as 1.1% to $4,786.54 per ounce, erasing earlier gains. Oil prices were volatile on Wednesday but remained below $100 per barrel, while the US Dollar Index weakened slightly. Concerns about rising consumer prices have led traders to bet that central banks will keep interest rates higher for longer or even hike them further, which pressures non-yielding gold. "The market is essentially caught in a tug-of-war between expectations for a de-escalation of the conflict and unresolved inflationary pressures," said Dilin Wu, Research Strategist at Pepperstone Group Ltd. As of 4:59 PM ET, spot gold was down 1% at $4,791.04 per ounce. Spot silver declined 0.7% to $78.9637 per ounce.
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