Oil Prices Stabilize Amid Ukraine Ceasefire Speculation, Copper Rises on Mine Shutdown

Oil prices remained stable, with WTI crude oil experiencing a narrow trading range of approximately 1.80 dollars, closing flat at a settlement price below 64 dollars per barrel. This marked the end of a six-day losing streak. Investors are assessing the potential impact of a ceasefire agreement between the U.S. and Russia on Ukraine, which could influence Russian oil exports. While there is skepticism about whether Europe will support an agreement seen as a significant victory for Russian President, the prospect of resumed cooperation between the U.S. and Russia has raised expectations that Russian oil could flow freely to its two major buyers. However, market focus has shifted to whether U.S. sanctions on Russia will continue, as these have weakened Russia's ability to sell oil and fund its military operations in recent months. If the European Union and the U.S. do not lift sanctions on Russian energy, any ceasefire would only moderately weigh on oil prices, as the market has not priced in much supply disruption risk. The proposed agreement is seen more as a ceasefire rather than a comprehensive peace deal. Brent crude oil for October delivery settled 16 cents higher at 66.59 dollars per barrel.

Copper prices rose, with LME copper gaining 0.8% to close at 9762.0 dollars per ton. This increase comes as traders evaluate the impact of a shutdown at Chile's largest copper mine, operated by state-owned Codelco, following an accident. Other base metals also saw gains, with LME aluminum closing flat at 2609.0 dollars per ton, LME nickel rising 0.25% to 15156.0 dollars per ton, and LME zinc increasing 0.5% to 2827.0 dollars per ton.

Gold prices saw a slight increase, narrowing their gains after the White House clarified that gold bars imported into the U.S. would not be subject to tariffs, contrary to previous statements that had caused market turmoil. This clarification helped to stabilize gold prices, which had previously surged due to uncertainty surrounding the tariff policy. By 6:29 p.m. New York time, gold had risen 0.04%. COMEX gold futures gained 1.14% to settle at 3439.1 dollars per ounce, while COMEX silver futures increased 0.65% to 38.542 dollars per ounce. The slight increase in gold prices reflects investor caution amidst global economic uncertainties, with gold serving as a safe-haven asset in times of market volatility.