Commodity markets were mixed heading into today’s session as investors balanced easing geopolitical headlines with anticipation of this morning’s U.S. Consumer Price Index (CPI) report. Energy markets remained elevated following recent supply disruptions in the Middle East, while precious metals moved higher as investors sought defensive positioning ahead of inflation data. Industrial metals also traded mostly higher, supported by continued strength in copper despite ongoing uncertainty surrounding global growth.
Oil & Gas
The energy sector continued to benefit from supply concerns despite relatively steady crude prices overnight. West Texas Intermediate (WTI) crude traded modestly higher near $83.31 per barrel, while Brent crude held around $88.85 after strong gains during the previous session. Markets remain focused on geopolitical developments, including continued disruptions around the Strait of Hormuz, attacks on shipping routes, and ongoing damage to Russian energy infrastructure. The International Energy Agency (IEA) now expects global oil demand to decline by 1.6 million barrels per day in 2026 due to higher fuel prices and persistent supply disruptions, while forecasting a sharp rebound in 2027 as production recovers. At the same time, global oil inventories fell by an estimated 69 million barrels in July, underscoring how tight physical markets remain despite softer demand expectations. U.S. inventory data also surprised to the upside with a larger-than-expected crude build, although gasoline and distillate inventories declined. Natural gas prices rose approximately 1.2% to $2.80/MMBtu after the Energy Information Administration lowered its Henry Hub price forecast, citing weaker LNG demand and abundant domestic production.
Energy-related ETFs reflected the constructive tone in crude markets. Oil exploration and production funds continued to outperform, with the iShares U.S. Oil & Gas Exploration & Production ETF (IEO) gaining nearly 2.0% over the latest session and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) advancing 1.4%. Broader energy sector funds, including the Energy Select Sector SPDR (XLE) and Vanguard Energy ETF (VDE), also posted gains of roughly 1.2% and 1.1%, respectively, while crude oil-focused funds such as the United States Oil Fund (USO) and Invesco DB Oil Fund (DBO) moved higher alongside benchmark oil prices.
Metals & Mining
Metals markets traded with a positive bias as investors positioned ahead of key inflation data and continued to favor precious metals as a defensive allocation. Gold rose 0.7% to approximately $4,474 per ounce, while silver climbed more than 2%, extending its recent strength. Copper also advanced, supported by expectations for resilient long-term demand and ongoing infrastructure investment. Company-specific news remained active across the sector, with several mining companies reporting quarterly earnings and project updates, while pre-market trading showed strength in major miners including Newmont and Freeport-McMoRan.
ETF performance across the metals and mining complex was mixed. Gold-backed ETFs were modestly lower following their recent rally, while silver miners continued to outperform thanks to stronger underlying silver prices. Copper and diversified mining funds remained resilient, reflecting ongoing optimism toward industrial metals despite broader economic uncertainty. Uranium ETFs also continued to attract investor interest as long-term demand expectations for nuclear power remain supportive.
Commodity markets remain heavily influenced by geopolitical developments, inflation expectations, and evolving supply dynamics. Energy prices continue to find support from ongoing disruptions in global oil markets despite weaker demand forecasts, while precious metals remain attractive as investors await additional economic data and clarity on the interest rate outlook. Today’s U.S. CPI report and tomorrow’s Producer Price Index (PPI) release are likely to provide the next major catalyst for both commodity prices and broader financial markets.
