SunSirs: Commodities Roundup: Crude Oil Rises, Nickel Prices Extend Gains for Fourth Day, Silver Surges

Crude oil prices climbed as Middle East tensions overshadowed concerns over worsening supply glut. Nickel extended gains for a fourth consecutive session, hitting a two-week high after major supplier Indonesia signaled substantial production cuts this year. Silver surged amid high volatility, following industry forecasts predicting stronger investment demand but weaker industrial usage over the next year.

Crude Oil: WTI Rises as Iran Tensions Overshadow Supply Glut Concerns

Crude oil prices climbed as Middle East tensions overshadowed concerns over worsening supply glut.

WTI settled above $64 per barrel after reports citing three U.S. officials stated the Pentagon had ordered a second carrier strike group to prepare for deployment to the Middle East. Earlier, the report also stated that the U.S. is considering seizing tankers carrying Iranian crude oil.

Previously, U.S. President Donald Trump posted on social media that he insisted on continuing negotiations with Iran during his meeting with Israeli Prime Minister Netanyahu. Netanyahu is widely expected to push for broad measures to curb Iran's military activities in the region.

Earlier, robust U.S. employment data improved the outlook for the world's largest economy and provided support for oil prices.

Traders are also awaiting the International Energy Agency's (IEA) monthly report due Thursday. The IEA has consistently warned of a massive supply glut in the crude oil market this year.

Meanwhile, U.S. Energy Information Administration (EIA) data showed U.S. crude inventories rose by 8.5 million barrels last week, the largest increase in barrels since January 2025, though below the 13.4 million-barrel rise forecast by industry groups a day earlier. Overall, oil prices reacted relatively mildly as investor attention remained focused on the situation in Iran.

WTI March futures rose 1.1% to settle at $64.63 per barrel;

Brent April futures settled up 0.9% at $69.40 per barrel.

Base Metals: Nickel Prices Extend Gains for Fourth Day

Nickel prices rose for a fourth consecutive day, hitting a two-week high, after major supplier Indonesia signaled significant production cuts this year.

Tri Winarno, Director General of Indonesia's Ministry of Energy and Mineral Resources, stated that this year's nickel ore production quota will range between 260 million and 270 million tons. This target is slightly higher than previous estimates but remains well below the 2025 target of 379 million tons.

At the close:

LME copper futures rose 0.45% to $13,166.50 per ton;

LME aluminum futures rose 0.32% to $3,103.0 per ton;

LME nickel futures climbed 2.23% to $17,880.0 per ton;

LME zinc futures gained 0.34% to $3,406.5 per ton.

Precious Metals: Silver Price Briefly Surpasses $85 per Ounce as Traders Weigh Supply-Demand Dynamics

Silver prices surged significantly, extending their high volatility, after industry institutions indicated stronger investment buying over the next year alongside weaker industrial demand.

Silver prices rose as much as 6.8% on Wednesday, climbing about one-third from last week's low. The Silver Institute reported that the silver market will see its sixth consecutive year of supply deficit, as surging investment demand outweighs weaker jewelry demand and reduced silver usage in the solar sector.

As of 4:43 p.m. New York time, spot silver rose 4.12% to $84.1421 per ounce;

Spot gold gained 1.09% to $5,080.29 per ounce.

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