Brent crude advanced as the market weighed the risk of renewed conflict between the United States and Iran against diplomatic efforts.
Copper prices were little changed as traders stayed cautious ahead of the Federal Reserve's interest rate decision.
Gold edged up after the Fed held rates steady without giving a clear hint of any possible rate increase at its December meeting.
Crude Oil: Brent Rises as Market Balances Renewed US-Iran Conflict Risk Against Diplomacy
Brent crude climbed, with the settlement price rising above $115 a barrel, after reports said the United States had told several Persian Gulf states to prepare for a short, high-intensity military operation against Tehran.
Brent gave back some gains after settlement, briefly falling below $114, following reports that U.S. Vice President Vance had been in contact with Rezaei, secretary of Iran's top security body, in an attempt to restart peace talks.
Israel's election and next week's U.S. midterm elections became the market's focus.
With more than 90% of votes counted in Israel, Netanyahu held a slight lead over opposition leader Eisenkot, but neither side had a clear path to forming a government.
Warren Patterson, head of commodities strategy at ING, said the market was pricing in the risk of another escalation of conflict, and oil prices are especially sensitive to the Persian Gulf situation, with the focus including whether the United States takes action against Iran after the midterm elections.
In addition, U.S. crude inventories fell by 1.9 million barrels, a fourth straight weekly decline, while Midwest gasoline stockpiles dropped to a record low.
December WTI crude futures rose 2.9%, settling at $102.78 a barrel.
December Brent crude futures rose 1.3%, settling at $115.32 a barrel.
Base Metals
Copper traded near its highest closing level in two weeks, with traders cautious ahead of the Federal Reserve's rate decision.
The market focused on the Fed's remarks on the economic and inflation outlook, as higher borrowing costs typically weigh on metals demand.
Copper prices have risen about 16% this year, with tight supply driving the rally.
On Wednesday, a key LME spread jumped sharply, signaling intensifying short-term supply pressure.
At the close, LME copper was little changed at $14,477.5 a ton.
LME aluminum fell 0.5% to $3,073 a ton.
LME nickel fell 0.2% to $15,605 a ton.
LME zinc rose 0.6% to $3,863.5 a ton.
LME tin fell 1.4% to $50,717 a ton.
LME lead fell 1.8% to $1,898.5 a ton.
Precious Metals
The Fed kept rates unchanged and reiterated its commitment to controlling inflation, but gave no clear signal on whether it would tighten monetary policy in December, after which gold erased its losses and rose slightly.
As U.S. Treasury yields and the dollar fluctuated, gold traded around $4,050 an ounce.
This was "a slightly hawkish hold," said Bart Melek, global head of commodity strategy at TD Securities.
"So we should expect higher rates ahead. But with no huge price pressures and inflation expectations well anchored, the subsequent rate increases are likely to be moderate."
As of 6:28 p.m. New York time, spot gold was up 0.2% at $4,067.35 an ounce.
Spot silver was down 0.8% at $53.9827 an ounce.
Comments