Oil Slides on Venezuela Supply Fears, Copper Holds Flat

Crude oil futures dropped 1.11% to $90.00 per barrel on Thursday, despite ongoing geopolitical tensions in the Middle East. The decline reflects market uncertainty about Venezuela's potential production doubling. U.S. Energy Secretary Chris Wright stated Venezuela could more than double output in coming years if new deals proceed. That prospect, combined with rising bond yields and demand concerns, is keeping pressure on prices. Oil finds support at $88.50, with resistance near $92.50.

Copper futures barely moved, closing unchanged at $6.59 per pound. The metal has traded in a tight $6.50 to $6.75 range for weeks, signaling industrial buyers are waiting for clearer signals. Chinese manufacturing data due later this week will likely provide the next catalyst. A break above $6.75 would signal renewed bullish momentum, but below $6.50 would suggest demand concerns are resurfacing.

The DBA agricultural ETF slipped 0.75% to $29.27. Grain prices remain stable as favorable weather in key producing regions supports output. The lack of inflationary pressure from food prices gives central banks room to remain patient on rate cuts, which keeps the macro backdrop measured for commodities.

Meanwhile, gold and silver extended gains on safe-haven demand. Spot gold equivalent rose 1.37% to $4,475.30 per ounce, with silver up 1.40% to $66.38. The move comes amid escalating Middle East tensions following U.S.-Iran strikes. The GLD ETF gained 1.52% to $402.78. Precious metals are finding support even as bond yields rise, suggesting fear-driven buying is overriding typical correlation patterns.

What to watch: Oil's test of $88.50 support, Chinese manufacturing data for copper direction, and any further escalation in Middle East tensions that could reverse oil's current downtrend.

This content is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Consult a qualified financial advisor before making investment decisions.

Related reading: Why Gold and Silver Sold Off When They Should Have Rallied. Dollar Strength Crushes Gold, Silver as Oil Rallies. Commodities Complex Signal: CFTC Data Shows Extreme Gold Longs, Oil Skepticism. See our Oil market coverage hub for more analysis.