Crude oil prices fell in volatile trading on Tuesday as investors closely monitored developments in the Russia-Ukraine conflict. Copper prices retreated from the previous day's record high, while silver held near its all-time peak, and gold edged lower.
**Crude Oil: Prices Drop Amid Market Turbulence** Oil prices declined on Tuesday amid choppy trading as traders assessed the trajectory of the Russia-Ukraine conflict on a critical day for peace negotiations.
WTI crude fluctuated within a $1.40 range before settling 1.2% lower at just above $58 per barrel.
Russian President Vladimir Putin reportedly threatened retaliatory measures against vessels from countries aiding Ukraine in the conflict. However, he also emphasized the need for Russia's economic growth, expressing dissatisfaction with imbalances in certain sectors. These remarks came as Russian oil producers face challenges due to falling crude prices, sanctions, and a stronger currency.
U.S. envoy Kurt Volker arrived in Moscow to meet with Putin, who claimed Russia had seized a key Ukrainian city amid peace talks. Attacks on Russian oil tankers surged last week, signaling escalating risks to oil shipments.
Geopolitical tensions also rose as the U.S. hinted at potential military action in Venezuela, supporting oil prices. Concerns grew after President Trump suggested imminent strikes on drug cartels in Venezuela and beyond.
Rebecca Babin, senior energy trader at CIBC Private Wealth Group, noted bearish sentiment dominates: "Liquidity is drying up fast, amplifying downside risks. Weak dip-buying confidence leaves prices vulnerable to sell-offs."
WTI for January delivery fell 1.2% to $58.64/barrel, while February Brent dropped 1.1% to $62.45.
**Base Metals: Copper Pulls Back from Record High** Copper prices retreated from historic highs on Tuesday.
LME copper snapped a two-day rally, and COMEX futures also declined. At London close: - LME copper: -1% at $11,145/ton - Aluminum: -1% at $2,865.5 - Nickel: -0.9% at $14,800 - Zinc: -1.1% at $3,062.5 - Tin: -0.3% at $39,040 - Lead: -0.4% at $1,995
**Precious Metals: Silver Hovers Near Peak** Silver traded near record highs as traders bet on prolonged Fed rate cuts and tight supply, while gold dipped.
Silver swung sharply, dropping 2.4% on profit-taking before rebounding 1.1% toward Monday's record of $58.8434/oz. The metal has nearly doubled this year, heading for its best annual performance since 1979.
By 4:13 p.m. ET, silver rose 1% to $58.56/oz, while gold fell 0.6% to $4,208.68.
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