Crude oil extended gains for a fifth consecutive session amid thin trading as investors weighed the impact of U.S. sanctions on Venezuelan oil exports against sluggish demand. Copper prices surpassed $12,000 per ton for the first time, fueled by mine disruptions that intensified supply concerns for the key industrial metal. Gold and silver climbed to fresh all-time highs, supported by expectations of U.S. rate cuts and geopolitical risks.
**Crude Oil: WTI Edges Higher as U.S. Sanctions on Venezuela Take Center Stage** Oil prices rose for a fifth straight day in subdued trading, with traders assessing the dual pressures of U.S. restrictions on Venezuelan crude shipments and weakening demand.
WTI crude gained 0.6%, settling above $58 per barrel, while Brent surpassed $62. The U.S. boarded one tanker, seized another, and pursued a third near Venezuela to pressure the Maduro government.
With December holidays approaching, trading volumes declined as many participants exited markets, amplifying price swings.
Former U.S. President Trump stated the U.S. would retain crude from the seized tankers. Venezuela accounts for less than 1% of global supply, but the revenue is vital for Maduro’s administration, which condemned the U.S. actions as "piracy."
Geopolitical tensions—including U.S. threats of military intervention against drug trafficking in Latin America and ongoing Ukraine conflicts—have partially offset oil’s decline since mid-June.
WTI has fallen roughly 19% this year, heading for its worst annual drop since 2020, as supply growth outpaces demand.
"Price action increasingly favors short-lived spikes rather than sustained rallies," said Rebecca Reed-Sperrin, a broker at SCB Group and former head of Braemar’s derivatives brokerage. "Even if Venezuelan exports drop sharply near-term, markets will remain well-supplied into early next year."
WTI February futures rose 0.6% to settle at $58.38/barrel; Brent February futures gained 0.5% to $62.38/barrel.
**Base Metals** Copper breached $12,000/ton for the first time as mine shutdowns and trade disruptions from U.S. tariff policies heightened supply worries.
LME copper surged 2% intraday to $12,159.50/ton. Prices have rallied over 35% this year, on track for their strongest annual gain since 2009.
Potential U.S. tariffs on copper have been a key driver, sparking a surge in American imports and forcing global manufacturers into bidding wars to secure supply.
Supply disruptions also mounted, with mine halts across the Americas, Africa, and Asia raising warnings of a major deficit that could further propel prices.
At close: LME copper +1.1% at $12,060.5/ton LME aluminum -0.1% at $2,939/ton LME nickel +3% at $15,739/ton LME zinc +0.3% at $3,093.5/ton LME tin -0.4% at $42,792/ton LME lead +0.6% at $1,982.5/ton
**Precious Metals** Gold and silver scaled record highs as geopolitical tensions and prospects of additional U.S. rate cuts fueled demand.
Spot silver jumped 3.6% to top $70/ounce for the first time, while gold approached $4,500/ounce, extending its strongest daily gain in over a month. Traders bet the Fed will cut rates again in 2025, with low rates supporting precious metals.
Gold’s haven appeal strengthened over the past week amid escalating tensions, particularly around Venezuela, where U.S. tanker interceptions tightened pressure on President Nicolás Maduro.
At 4:49 p.m. ET: Spot gold +1% at $4,488.72/ounce Spot silver +3.5% at $71.4498/ounce
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