According to Sina Finance, crude oil prices continued to decline on Wednesday as the impact of the Iran conflict faded and shipping through the Strait of Hormuz resumed. Easing tensions in the Middle East also weighed on aluminum prices, with London aluminum futures briefly touching their lowest level since February. Meanwhile, gold prices rose as investors weighed the outlook for U.S. interest rate policy following remarks by Federal Reserve Governor Warsh.

Crude Oil: Signs of Oversupply Mount; Prices Fall

Oil prices extended their decline on Wednesday as signs of oversupply increased, driven by the resumption of shipping through the Strait of Hormuz and the waning impact of the Iran conflict.

WTI crude fell 1.3% to close below $69 per barrel, while Brent crude settled near $72 per barrel. U.S. President Trump stated that U.S. negotiators had made progress in indirect talks with Iran.

Crude oil futures fell further following the release of the U.S. Department of Energy's inventory report. The data showed a decline in crude stockpiles that was approximately 2 million barrels smaller than the American Petroleum Institute had previously forecast. Nevertheless, overall supplies remain well below normal levels; U.S. total crude inventories are at their lowest level since September 2018, following a surge in exports that helped fill the gap left by the loss of Middle Eastern supplies.

Bearish sentiment continues to dominate the market. The Brent front-month spread remains in contango—a sign of oversupply—while WTI is also edging closer to signaling oversupply for the first time since November.

Goldman Sachs projects an oversupply of nearly 2 million barrels per day next year, even after accounting for the replenishment of global strategic petroleum reserves following the Iran conflict. Morgan Stanley also warned of an impending supply glut as oil shipments through the Strait of Hormuz recover faster than expected; the bank has lowered its price forecasts twice in about two weeks.

August WTI crude fell 1.3% to settle at $68.58 per barrel;

September Brent crude fell 1.9% to $71.57 per barrel. Precious Metals: Gold Rises

Gold prices climbed as investors weighed the outlook for U.S. monetary policy following remarks by Federal Reserve Chair Kevin Warsh.

Gold rose as much as 2.7% as gains in the U.S. dollar and bond yields moderated.

Warsh reiterated that he would not provide "forward guidance" on upcoming interest rate policy. He also noted that price risks had eased in recent weeks while reaffirming his determination to bring inflation back to the 2% target.

"Warsh is sticking to the established script, which has boosted gold prices," said Bart Melek, Global Head of Commodity Strategy at TD Securities. "Gold traders had previously worried that his stance might turn more hawkish."

Traders are turning their attention to Thursday's non-farm payrolls data, which could offer clues regarding the Fed's next move. The government report is expected to show an increase of 115,000 U.S. non-farm jobs in June, marking the strongest six-month period of job growth since mid-2024.

As of 3:03 p.m. New York time, spot gold was up 1.4% at approximately $4,064.41 per ounce. The Bloomberg Dollar Spot Index rose 0.2%. Silver gained 2%, while platinum and palladium also traded higher.

Base Metals: Aluminum Hits Low Not Seen Since February

Aluminum prices fell to their lowest level since mid-February on Wednesday, as a stronger dollar and easing tensions in the Middle East continued to weigh on commodities.

Aluminum dropped 16% in June, marking its largest monthly decline since 2008. The winding down of the conflict in the Middle East has put pressure on prices; aluminum had surged between March and May after the war involving Iran threatened to cut off a region that accounts for nearly one-tenth of global production.

"Aluminum has seen a massive collapse, falling back to pre-war levels," said Ole Hansen, Head of Commodity Strategy at Saxo Bank. "It looks like a rout of investors who were long on the metal, which has exacerbated the decline." As of the close of the London market:

LME copper futures fell 0.6% to $13,298.5/ton;

LME aluminum futures fell 0.3% to $3,076/ton;

LME zinc futures fell 1.5% to $3,499/ton;

LME nickel futures rose 0.4% to $16,355/ton;

LME tin futures rose 0.1% to $51,632/ton;

LME lead futures fell 0.5% to $1,865.5/ton.

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