Oil prices reversed intraday losses to close higher after the U.S. military intercepted and seized a sanctioned oil tanker near Venezuela's coast. Gold gained on the Federal Reserve's rate-cut decision and plans to purchase Treasury bills, while silver surged to a record high. Copper prices climbed ahead of the Fed's policy announcement.
**Crude Oil: Prices Rebound as U.S. Seizes Tanker Off Venezuela** Crude futures erased earlier declines after reports that the U.S. military intercepted a sanctioned oil tanker near Venezuela, marking a significant escalation in tensions between the two nations.
WTI crude turned higher, settling above $58 per barrel after dropping as much as 1% earlier. Brent crude closed above $62 per barrel.
The seizure could further complicate Venezuela's crude exports, as shipping firms may now be more reluctant to load its oil. U.S. President Donald Trump has repeatedly hinted at potential strikes against Venezuela, stating that President Nicolás Maduro's "days are numbered."
Meanwhile, Ukraine attacked another Russian "shadow fleet" tanker, continuing its efforts to disrupt Moscow's critical seaborne oil trade.
U.S. crude inventories fell by 1.8 million barrels last week, marking the first decline in about three weeks, according to Energy Information Administration data released Wednesday.
January WTI crude rose 0.36% to settle at $58.46 per barrel, while February Brent crude gained 0.44% to $62.21.
**Precious Metals: Gold Rises, Silver Reaches All-Time High** Gold advanced after the Fed delivered a widely expected third consecutive rate cut and maintained its outlook for only one reduction in 2026. Silver climbed to a historic peak.
Following the Fed's final meeting of the year, gold rose as much as 0.7% amid further declines in Treasury yields and the dollar.
The Federal Open Market Committee voted 9-3 to lower the federal funds rate target range by 25 basis points to 3.5%-3.75%. The statement included subtle wording changes, signaling increased uncertainty about future cuts.
Bloomberg Economics' chief U.S. economist Anna Wong noted the "dovish tilt" in the statement and updated dot-plot projections, contrasting traders' earlier fears of a "hawkish cut."
Additionally, the Fed announced it would begin purchasing $40 billion in Treasury bills monthly starting December 12 to rebuild financial system reserves.
Bart Melek, TD Securities' global head of commodity strategy, called the move "gold-positive," likening it to a "mini-QE" despite being liquidity-focused measures.
Spot gold rose 0.6% to $4,232.75 per ounce by 3:42 p.m. in New York, while silver hit a record $61.9507 per ounce.
**Base Metals: Copper Gains Ahead of Fed Decision** Copper prices rose in London on Wednesday, rebounding toward recent record highs amid supply concerns and expectations for a Fed rate cut later in the day.
**Closing Prices:** - LME copper: +0.6% at $11,556.5/ton - LME aluminum: +0.4% at $2,867/ton - LME nickel: -0.6% at $14,652/ton - LME zinc: -0.3% at $3,082/ton - LME tin: +0.4% at $40,004/ton - LME lead: +0.1% at $1,980/ton
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