Commodity markets were mixed to start the day as investors continued to balance geopolitical developments, global supply concerns, and corporate earnings. Energy markets remained focused on negotiations surrounding the Strait of Hormuz, while metals continued to benefit from tightening supply dynamics and resilient long-term demand tied to infrastructure, electrification, and defense spending. Overall, commodity markets remain highly headline-driven, but the underlying fundamentals for many industrial and precious metals continue to improve.
Oil & Gas
Oil prices traded modestly higher Thursday morning as markets awaited further developments on a potential U.S.-Iran agreement. WTI crude rose 0.7% to $75.79 per barrel and Brent crude gained 1.0% to $80.21. While diplomatic progress has eased some concerns surrounding Middle East supply disruptions, attacks on commercial vessels near the Strait of Hormuz and Red Sea continue to remind investors that geopolitical risk remains elevated. Shipping traffic through both waterways declined sharply during the week, highlighting the ongoing disruption to global energy flows.
Natural gas moved lower, falling 1.3% to $2.652/MMBtu as traders looked ahead to the weekly EIA storage report. Expectations remain for inventories to build above the five-year average, while cooler weather forecasts continue to limit near-term demand.
Corporate earnings across the energy sector remained generally constructive. Occidental Petroleum, ConocoPhillips, Matador Resources and Permian Resources all delivered solid operating results, while several pipeline companies, including Western Midstream, Kinetik and Targa Resources, raised or reaffirmed guidance, reflecting continued strength in U.S. energy infrastructure despite volatile commodity prices.
Metals & Mining
Metals continued to outperform as investors favored both precious and industrial metals. Gold traded near seven-week highs, rising 0.3% to $4,319 per ounce, supported by ongoing geopolitical uncertainty and longer-term expectations for lower real interest rates. UBS reiterated a constructive outlook, projecting gold could approach $5,000 per ounce during the first half of 2027.
Industrial metals also remained well supported. Copper climbed another 0.9% to $6.785 per pound, extending an already strong monthly rally. Supply concerns intensified after the Democratic Republic of Congo announced a ban on exports of copper and cobalt concentrates in an effort to encourage domestic processing. At the same time, tightening inventories and continued demand from electrification and artificial intelligence infrastructure remain supportive for copper prices. Nickel weakened modestly following reports that Indonesia could increase mining quotas, potentially boosting global supply.
Mining company earnings also reflected the favorable pricing environment. Copper producers such as Taseko Mines and Lundin Mining reported strong quarterly results, while gold producers including Royal Gold, Coeur Mining and Artemis Gold continued to demonstrate healthy production trends and shareholder returns. Lithium producer Albemarle also posted stronger-than-expected results, supported by improving pricing and higher volumes.
