SunSirs: Yesterday's Commodity Roundup: Oil Prices Fluctuate, Copper Hits Three-Week High, Gold Rises

Oil prices fluctuated as traders weighed expectations of a modest OPEC production increase in April and pessimistic U.S. government data against mounting pressure on Iran's nuclear program. Copper climbed to a three-week high. Gold advanced while silver surged significantly.

Crude Oil: Prices Fluctuate as Traders Await Progress in U.S.-Iran Nuclear Talks

Oil prices fluctuated as traders weighed expectations of a modest OPEC production increase in April and pessimistic U.S. government data against mounting pressure on Iran's nuclear program.

WTI crude oil prices fluctuated within a range of about $1.50, settling 0.3% lower to close above $65 per barrel. Traders have been analyzing signals to gauge whether Iran's concessions on nuclear issues are sufficient to ease tensions with the U.S.

April-delivery WTI crude fell 0.3%, settling at $65.42 per barrel;

April-delivery Brent crude rose 0.1%, settling at $70.85 per barrel.

The U.S. government announced new sanctions Wednesday against entities supporting Iran's oil and weapons sales. President Trump's State of the Union address Tuesday, in which he stated Iran continues pursuing the revival of its nuclear program, fueled speculation he may be preparing a new military strike against Iran in the coming days. Iran has consistently maintained its nuclear program is for peaceful purposes.

Meanwhile, data released Wednesday by the U.S. Energy Information Administration showed crude inventories rose by nearly 16 million barrels last week—the largest increase since February 2023—despite slight declines in some refined product stocks. Traders remained cautious about the data, citing unusual weather conditions and significant adjustment factors.

Some OPEC+ representatives indicated the group is expected to agree to resume modest production increases when it meets this weekend to review April output policy, further offsetting upward momentum driven by the Iran situation.

Base Metals: Copper Prices Rise to Three-Week High

Copper prices climbed to a three-week high amid market expectations that the U.S. may reduce import tariffs. However, a significant inventory build suggests high prices have curbed physical buying.

On Wednesday, copper prices rose as much as 1.4% to $13,350 per tonne, closing up 1.2% and extending the previous session's 2.3% gain.

After hitting record highs in late January, copper prices retreated and are now consolidating near historic peaks. Recent shifts in U.S. trade policy and declining mine output have provided support.

Citigroup analysts including Tom Mulqueen stated in a report that China's copper inventories are expected to see further seasonal declines in the coming months. The analysts also noted that investors may increase their buying of copper on dips.

At the close:

LME copper futures rose 1.18% to $13,322.50 per tonne;

LME aluminum futures gained 2.49% to $3,170.50 per tonne;

LME nickel futures rose 0.98% to $18,085.0 per tonne;

LME zinc futures gained 0.27% to $3,388.5 per tonne.

Precious Metals: Gold Prices Rise

Gold advanced while silver surged significantly. Traders weighed uncertainties surrounding U.S. import tariffs against escalating tensions in the Middle East.

Spot gold gained as much as 1.4% on Wednesday, recouping some of the previous session's losses. Recent uncertainty over U.S. trade policy provided support for gold prices, while heightened U.S. military deployments in the region ahead of this week's new round of nuclear talks with Iran further fueled market jitters. Silver briefly surpassed $90 per ounce.

Yuxuan Tang, Head of Asia Macro Strategy at JPMorgan Private Bank, stated: “Gold appears poised for an upward breakout.” She noted that factors like tariff uncertainty and Iran-related risks “could be sufficient to catalyze a more sustained shift.”

As of 5:40 p.m. New York time, spot silver rose 2.38% to $89.2296 per ounce;

Spot gold gained 0.41% to $5,164.78 per ounce.

As an integrated internet platform providing benchmark prices, on February 26, the SunSirs copper benchmark price was 102,146.67 RMB/ton, a decrease of 2.25% compared with the beginning of the month (104,496.67 RMB/ton).

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