Oil prices edged lower as markets weighed geopolitical tensions against oversupply concerns. Copper extended gains after breaching $12,000 per tonne, buoyed by tightening global supply outlook through 2026. Gold dipped slightly as some traders booked profits following its first-ever break above the $4,500 threshold.

Crude Oil: Prices Dip as Markets Weigh Geopolitical Tensions and Supply Glut Expectations

Trading remained subdued on Christmas Eve, with crude oil markets largely flat as traders continued to weigh the two dominant factors affecting prices this year: escalating geopolitical tensions and widespread expectations of a global supply glut.

WTI fell 3 cents to settle around $58 per barrel, ending a five-day winning streak.

Investors remained focused on signs of potential supply disruptions from Venezuela as the Trump administration intensified pressure on the country.

Dennis Kissler, senior vice president of trading at BOK Financial Securities Inc., said turmoil in the Caribbean was “the market's focus heading into the holiday weekend.”

“While blockades and sanctions haven't reduced global oil supply, they could cause delays, which could provide some support to prices,” he said.

WTI remains on track for its steepest annual decline since 2020, with nearly all major crude traders anticipating a market oversupply next year as OPEC+ members and other producers ramp up output.

Nevertheless, concerns over supply disruptions—particularly risks from Russia and Venezuela—are helping to underpin oil prices.

The U.S. Energy Information Administration (EIA) will release its weekly Petroleum Status Report on December 29, covering data through the week ending December 19.

WTI February futures fell 3 cents to settle at $58.35 per barrel.

Brent February futures settled down 14 cents at $62.24 per barrel.

Base Metals

Copper prices extended their strong rally since December, breaking through $12,000 per tonne to hit a record high, driven by concerns over tightening global market supply by 2026.

Investors anticipate significant copper flows to the U.S. market ahead of potential import tariffs, leaving buyers in other global regions facing tight supply conditions. LME copper has surged nearly 40% this year, poised for its best annual performance since 2009.

On Wednesday, copper prices rose as much as 1.8% to hit a record high of $12,282 per tonne before settling at $12,162.50 per tonne.

At the close, LME copper futures gained 0.9% to settle at $12,162.50 per tonne.

LME aluminum futures gained 0.7% to $2,960.50 per tonne;

LME nickel futures rose 0.3% to $15,786 per tonne;

LME zinc futures dipped 0.1% to $3,090.50 per tonne;

LME tin futures edged up 0.1% to $42,815 per tonne;

LME lead futures rose 0.6% to $1,994.50 per tonne.

Precious Metals

Gold edged lower as traders booked profits after the metal first breached the $4,500 threshold.

In thin Christmas Eve trading, gold prices briefly fell 0.8%. Overnight, gold had hit a record high of $4,525.77 per ounce.

Platinum plunged over 6%, also retreating from its overnight historic peak.

As the year draws to a close, some traders are taking profits after a sharp rally in the precious metals market. Even so, gold is still up nearly 70% this year, while platinum has more than doubled.

As of 1:45 p.m. Eastern Time, spot gold was down 0.1% at $4,479.42 per ounce.

Spot silver rose 0.6% to $71.87 per ounce.

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