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Oil prices steady as the market weighs Venezuela and Russia supply risks
The oil prices remained stable on Tuesday, after rising by more than 2% the previous session. The U.S. announced that it may sell the Venezuelan crude they seized. Meanwhile, Ukraine's attacks against Russian vessels and piers increased fears of supply disruption. Brent crude futures fell by 6 cents or 0.1% to $62.01 a barrel at 0440 GMT. U.S. West Texas Intermediate crude (WTI), which is a blend of West Texas and Texas Intermediate crudes, fell 9 cents or 0.16% to $57.92. Brent's daily performance was the best in two months, and WTI rose to its highest level since November 14. In a recent note, Priyanka?Sachdeva, a senior market analyst at brokerage Phillip Nova said that crude oil markets were grinding through the last weeks of 2025 - with prices largely subdued. This reflects a tug-of war between persistently bearish fundamentals, and intermittently bullish headlines. She said that while prices showed modest rebounds in geopolitical headlines through 2025, a broader narrative points to an imbalance of sluggish supply and sluggish demands. Overall, the trend is weaker as structural supply concerns overshadow short-term risk-off rallies. The markets are cautious, as traders balance geopolitical risk against the forecasts for ample supply by early 2026. This leaves prices vulnerable to any prolonged disruptions. Donald Trump, the U.S. president, said on Monday that the U.S. could keep or sell oil it has seized in recent weeks off the coasts of Venezuela. This is part of his campaign of pressure against Venezuela, including a "blockade", of oil tankers subject to sanctions, entering and exiting the country. Barclays stated in a Monday note that oil markets would likely be well-supplied in H1 26 even if Venezuelan exports fell to zero in the near future. Barclays, however, estimates that the global oil surplus in 2026 will be reduced to just 700,000 barrels a day. A prolonged disruption would also tighten up the market, reducing recent stock builds. Russia and Ukraine have been attacking each other's Black Sea facilities, which is a crucial export route for both countries. In the second attack in less than 24 hour, Russian forces attacked Ukraine's Black Sea Port of Odesa on Monday night and damaged port facilities and an entire ship. Authorities in the region of Krasnodar, Russia, said that a Ukrainian drone attack caused damage to?two vessels and two piers, as well as a fire, in a village. Ukraine has also targeted Russia’s maritime logistics. It is focusing on the shadow fleet of oil tankers, which are attempting to bypass sanctions against Russia during the almost four-year-old war. (Reporting from Anjana Anil, Bengaluru; Emily Chow, Singapore; Editing done by Sonali and Neil Fullick.)
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Latrobe Magnesium receives potential funding from an export agency for the second stage of its magnesium plant
Export Finance Australia has sent a non-binding support letter to Latrobe Magnesium, Australia. The letter could be used to fund the construction of a magnesium plant in Victoria. The U.S. will provide support for the development of stage 2 of the commercial magnesia extraction facility as part of a deal with Australia that aims to counter China's dominance of the minerals industry. Magnesium, which is used to produce steel and titanium in China, is the world’s largest producer. Construction of the 'plant, which will process up to 10,000 tons of magnesium each year, is estimated to cost approximately A$250,000,000 ($166.70 millions). Latrobe didn't specify any potential EFA support. As of 0349 GMT the shares of the 'Victoria based magnesium plant operator increased by up to 15% to A$0.023, their highest level since December 12. The benchmark index rose 1.1%. The company stated that the letter of support is not a financial commitment, and it must meet the due diligence criteria and eligibility criteria set by the export agency. The company?said that Australia's Export?Credit Agency, EFA, expressed an interest in partnering with the U.S. Export-Import Bank to finance the stage 2 project. The U.S. Export-Import Bank sent a 'Letter of interest' to Latrobe in October to explore financing for up to A$200,000,000 ($133.26,000,000) for the Stage?2 Plant. The U.S. will receive all magnesium produced by the stage 2 plant under an offtake contract. David Paterson, CEO of Latrobe, said: "The United States currently does not have a primary magnesium producer in its locality. LMG is well positioned to fill this gap within the next few years."
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Due to supply constraints, copper prices are nearing record highs.
The copper price ticked upwards on Tuesday. It hovered near the record levels reached in the previous session. This was after Antofagasta, a Chilean miner, and a Chinese smelter, agreed to a zero-processing fee for 2026 copper concentrate. This underscored supply constraints. As of 0332 GMT, the most active "copper" contract on Shanghai Futures Exchange rose 0.1% to 93,810 Yuan ($13325.28) per metric tonne. The benchmark copper price for the three-month period on the London Futures Exchange remained unchanged at $11,926.0 per ton. According to a Chinese market data provider, China's leading copper smelters plan to reduce production by more than 10% in 2026 to combat overcapacity, which has led to an increase in distorted processing fees for copper concentrates. After protracted negotiations, Chilean smelter Antofagasta has agreed to zero treatment charges and refining fees (TC/RCs). Miners pay TC/RCs traditionally to smelters in order to cover the costs of?converting copper concentrate into refined metal. Charges fall when the mine supply is tightened and smelters agree to accept less favorable terms in order to secure concentrate. Nickel, one of the SHFE's base metals, extended its gains for a 5th straight session. It reached a new high in more than 2 months, rising 3.6% to 122,750 Yuan per ton. The London benchmark nickel also rose, rising 0.5% to $16,350 per ton. This is its highest level since October 30. Nickel's rally has continued to gain support after the miner association of Indonesia, the largest nickel-producing country, announced last week that it will reduce mine production in 2026. Aluminium fell by 0.4% in Shanghai, while zinc and lead were up?0.20%. Tin was also up 0.1%. Aluminium, among other LME metals?nudged up 0.1%. Zinc was down by 0.1%. Lead added 0.1%. Tin gained 0.8%. Tuesday, December 23, DATA/EVENTS (GMT) Japan Chain Store Sales YY November 1330 US Durable Goods Oct 1330 US Gross Domestic Product Advance Q3 1415 US Industrial Production MM Nov The US Consumer Confidence Declined by 1500 Points The US Home Sales Units Oct. 2015: 1500
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Silver reaches new highs on demand for safe haven gold
Investors flew to gold as a safe haven amid tensions between the U.S. and Venezuela. Silver also reached a new high. As of 0329 GMT the spot gold price was up by 0.9% to $4,486.41 an ounce. It had earlier reached a record high of $4,497.55 per ounce. U.S. Gold Futures for February Delivery jumped 1.1% at $4,519.70. Tim Waterer is the chief market analyst for KCM Trade. He said that U.S.-Venezuelan tense relations are keeping gold in investors' minds as a hedge against uncertainty. Gold has risen this week, as part of a broader shift as U.S. rates are expected to ease. Waterer stated that buyers continue to view precious metals as a way to diversify their portfolios and maintain value. He added, "I do not think we have reached the high watermark for gold or Silver yet." Last week, U.S. president Donald Trump announced a "blockade", which would prevent?all oil tanks under sanctions? from entering and leaving Venezuela. Markets priced in two rate reductions for next year, amid expectations of a more moderate policy stance. Bullion has surged by more than 70% in the past year. This is due to a powerful?mixture of geopolitical risk, central bank purchases, rate-cut betting, de-dollarisation, and renewed exchange traded fund inflows. Frank Walbaum is a Naga analyst. He noted that the price of gold could be affected by geopolitical headlines as well as changes in expectations about rates. Spot silver rose 1% to $69.70, after reaching a record $69.98. The year-to date gains have exceeded 141%, and it has outpaced gold due to supply deficits, increased industrial demand, and investment inflows. Michael Brown, senior strategist at Pepperstone said that some consolidation could be possible over the holiday period, as liquidity thinned. He said, however, that the rally would resume once the volumes return. The $5,000 level is a natural target next year for gold and $75 for silver. The spot platinum price rose 1.2%, to $2,145.10 - its highest level in over 17 years - while the palladium price rose 3.4%, to $1,819.00 - a three year high, following gold and silver's strength. (Reporting from Sherin Elizabeth Varighese in Bengaluru and Arunima Kumar; editing by Rashmi Aich, Subhranshu Shu.)
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As mill maintenance and rising China port stock weigh, iron ore falls
The price of iron ore futures fell on Tuesday due to steel mills performing annual furnace maintenance, and a rise in?Chinese ports inventories. As of 0258 GMT, the most-traded contract for May iron ore?on China’s Dalian Commodity Exchange(DCE)?traded 0.64% lower at 775.5 Yuan ($110.30). The benchmark January Iron Ore at the Singapore Exchange fell by 0.49% to $104.25 per ton. The steel mills have annual blast furnace maintenance plans which are causing a decline in pig iron production. Port inventories are continuing to build up, showing a slight weakening of the fundamentals. SteelHome data shows that total iron ore stocks across Chinese ports increased by 1.19% week-on-week, to 145.5 million tonnes as of December 19. Steel producers reported mixed results. Japan's crude output of steel fell by 1.6% in November from the same month a year earlier, to 6.77 millions tons. India's production of steel grew 6.1% on an annual basis against a 5.9% increase that was revised upwards for October. The dollar index, which measures currency against six different units, fell to 98.18 at the start of trading on Tuesday. It is still on track to drop 9.5% for the year. This will be its biggest annual fall since 2017. Dollar-denominated investments are more affordable for holders of currencies other than the greenback. The DCE showed a?mixed picture of other steelmaking ingredients, with coking coke up 1.04% but coke down by 0.17%. Mysteel said that China's supply of coking coal continued to tighten as of December 22. This was due to strict safety inspections and slower production at the end-of-year. However, a softer downstream market capped price increases. The benchmarks for steel on the Shanghai Futures Exchange mostly rose. The Shanghai Futures Exchange saw a majority of steel benchmarks in the green.
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Stocks and precious metals are rising; the yen is on watch
Asia shares and precious metals rose on Tuesday, as investors continued to buy ahead of the upcoming holidays. A reading on U.S. Gross Domestic Product (GDP) is expected later that day. The fragile yen has found a floor as traders remain alert for any indications of Japanese intervention to stop the currency's decline, which?has? picked up speed in the wake of the well-telegraphed Bank of Japan rate hike last Friday. Investors will be able to catch up with a number of U.S. Economic releases that were delayed due to a record-breaking government shutdown in January. The key data for Tuesday will be the third-quarter figures of growth, which are expected to show that the U.S. has continued to grow strongly. The annualised growth is expected to be 3.3%. This is a slight drop from the previous quarter, due to a sharp decline in imports following a surge earlier in the year before the introduction of tariffs. David Doyle, the head of Macquarie Group's economics, said: "Growth is expected to slow in Q4 due to the prolonged government shutdown, and a potential further headwind coming from auto sales." The market was still optimistic ahead of the result. MSCI's broadest Asia-Pacific index outside Japan rose by 0.31% during early trading, while Tokyo Nikkei gained 0.1%. Nasdaq Futures gained 0.11% while S&P 500 futures were barely changed. Shares of Nvidia rose overnight after reports that the company had told Chinese clients they hoped to begin shipping "its second most powerful AI chip to China" before the Lunar New Year holidays in mid-February, next year. The U.S. Food and Drug Administration on Monday approved Novo Nordisk's weight-loss medication, giving the Danish company a competitive advantage in the race for a powerful oral medication to shed pounds. As we near the end of the year, investors are increasing their equity and commodity exposures. This is according to Jose Torres senior economist at Interactive Brokers. "Traders are currently taking their cues from the general feeling amongst participants, that there is little standing in the way of a Santa Claus rally manifesting." Spot gold and silver reached all-time-highs in precious metals. This was driven by the demand for safe-haven assets as geopolitical tensions escalated, with the U.S. attempting to seize more tankers transporting Venezuelan oil. After rising on Monday due to concerns about supply disruption, oil prices have dipped a little. Brent crude futures dipped 0.06% to $62.03 per barrel, while U.S. Crude fell 0.16% at $57.92 a barrel. INTERVENTION - TREASONS KEEP YEN IN CHECK The yen was the main focus on the foreign exchange markets as investors assessed the likelihood of an impending intervention by Japanese authorities to support the currency. Early trade saw the dollar at 156.57, up 0.3%. Satsuki Katayama, Japan's Finance Minister, told Bloomberg News on Monday in an interview that Japan has the freedom to deal with excessive movements in the yen. This was her strongest warning against the currency’s weakness. The BOJ increased rates on Friday at the end of its policy meeting for December. This was widely anticipated and Governor Kazuo ueda gave few hints about the future extent of rate increases. "Their message was so unimpressive... You hike, but it needs to be with conviction. "They didn't walk with conviction," said Alicia Garcia Herrero chief economist of Asia Pacific for Natixis. The yen had also been pinned to a near-record low against the euro and Swiss franc. The dollar is losing ground against other currencies. The euro rose 0.12% to $1.1772 while the pound sterling increased 0.16% at $1.3482.
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Oil prices drop as the market considers Venezuela and Russia supply risks
The oil prices fell in early trading on Tuesday, after rising by more than 2% the previous day. This was due to the U.S. saying it may'sell Venezuelan crude that it has seized. Meanwhile, Ukraine's attacks against Russian vessels and piers increased supply disruption concerns. Brent crude futures dropped 11 cents or 0.18% to $61.96 a barrel at 0100 GMT. U.S. West Texas Intermediate crude (WTI), which is a blend of U.S. West Texas Intermediate and Brent crude, fell 13 cents or 0.22% to $57.88. Brent posted its best performance in over two months, while WTI climbed the most since November 14, Donald Trump, U.S. President, said on Monday that the U.S. could keep or sell oil that it has seized in recent weeks off the coast of Venezuela as part of his pressure campaign on the country. Trump added that it could be used as a strategic reserve or to sell. He said that it would be smart for Venezuelan president Nicolas Maduro to step down. Barclays stated in a Monday note that oil markets would likely be well-supplied in H1 26 even if Venezuelan exports fell to zero in the near future. Barclays, however, estimates that the global oil surplus is expected to shrink by 700,000 barrels a day in the?fourth quarter of 2026. A prolonged disruption may further tighten the market, reducing recent inventories. In the meantime, Russia and Ukraine launched attacks on each other's facilities in the Black Sea. This is a crucial export route for both nations. Russian forces attacked Ukraine's Black Sea port of Odesa on Monday night, damaging port facilities and a vessel. This was the second attack in less than 24 hours. Authorities in the region of Krasnodar, Russia, said that a Ukrainian drone attacked two vessels and two?piers, causing a fire to spread in a village. Ukraine has also targeted Russia’s maritime logistics, focusing on the shadow fleet oil tankers which attempt to bypass Russia’s sanctions over the nearly 4-year war. Market participants remain cautious, weighing geopolitical risk against the forecasts for ample supply by early 2026. This leaves prices vulnerable to prolonged disruptions.
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Trump: It would be a'smart move' for Venezuelan Maduro's Maduro leave power
Donald Trump, the U.S. president, said that it would be a good idea for Venezuelan President Nicolas Maduro if he left power. The United States can 'keep or sell' the oil they have seized in recent weeks off the coast of Venezuela. Trump's campaign of pressure on Maduro includes a stepped-up military presence and over two dozen military attacks on vessels suspected of trafficking drugs near Venezuela in the Pacific Ocean or Caribbean Sea. The?attacks have killed at least 100 people. When asked if his goal was to remove Maduro from the presidency, Trump replied to reporters: "Well I think it would probably... It's up him what he decides to do. I think he'd be wise to do that. We're going to find out." He said, "If he does something, and he is tough, that will be the last time?he can ever play tough." Trump, during the press conference also "took aim" at Colombian president Gustavo Petro, with whom he had also been feuding throughout the entire year. "He is not a friend of the United States." He is very bad. He's a very bad guy. "He's got to watch his ars because he's making cocaine and they're sending it into the U.S.," Trump replied when asked about Petro’s criticisms of the Trump administration’s handling the tensions with Venezuela. Trump announced earlier that in addition to the strikes, he would "blockade all oil tankers subject to sanctions from entering or leaving Venezuela." On Sunday, the U.S. Coast Guard began pursuing an oil-tanker in international waters near Venezuela. This would be the second operation of this weekend and the third within two weeks. Trump said, "Maybe we'll sell it, or maybe we'll keep it," when asked about what would happen to the oil seized. He added that it could?also be used?to replenish the United States strategic reserves. Maduro, without directly referring Trump's remarks, said that every leader should?attend to the internal affairs of his or her own country. "If I talk to him again, then I'll tell him that each country should take care of its own internal matters," Maduro said in reference to a first phone call made between the two leaders a month ago. Steve Holland reported the story. Idrees Al-Ali (Writing) and Chris Reese, Stephen Coates and Stephen Coates (Editing).
Silver reaches new highs on demand for safe haven gold
Investors flocked to gold as a safe haven amid U.S.-Venezuela tense relations, and silver reached a new high.
As of 0527 GMT spot gold was up by 0.8% to $4,479.18 an ounce after reaching a record high earlier in the day. U.S. Gold Futures for February Delivery jumped 1%, to $4,511.50.
Tim Waterer is the chief market analyst of KCM Trade. He said that U.S.-Venezuelan tense relations are keeping gold in investors' minds as a hedge against uncertainty. Gold?has surged this past week as part a broader position shift as U.S. rates are expected to ease even further.
Waterer stated that buyers continue to view precious metals as a way to diversify their portfolios and maintain value. He added, "I do not think we have reached the high watermark for gold or Silver yet."
Last week, Donald Trump announced that all oil tankers subject to sanctions entering and leaving Venezuela would be "blocked".
Markets priced in two rate reductions for next year, amid expectations of a more moderate policy stance.
Bullion has increased by more than 70% in the past year. This is due to a powerful?mixture of geopolitical risk, central bank purchases, rate-cut betting, de-dollarisation, and renewed exchange traded fund inflows.
As the year ends, a thinner liquidity condition could increase price swings, said Frank Walbaum. A?market analyst with Naga, Walbaum noted that gold may remain particularly sensitive to geopolitical headlines as well as changes in rate expectations.
Spot'silver' was up 0.5% to $69.39, after reaching a record $69.98. Its year-to date gains have exceeded 141%, and it has outpaced gold due to supply deficits and industrial demand, as well as investment inflows.
Michael Brown, senior strategist at Pepperstone said that some consolidation could be possible over the holiday period, as liquidity is thinned.
He said, however, that the rally would resume once the volumes return. The $5,000 level is a natural target next year for gold and $75 for silver.
The spot platinum price rose by 1.9%, to $2,165.67. This is the highest level in over 17 years. Palladium also rose by 1.9%, to $1,792.51, a new three-year record, tracking gold and silver. (Reporting from Sherin Elizabeth Varighese in Bengaluru and Arunima Kumar; editing by Rashmi Aich, Subhranshu Shu.)
(source: Reuters)