KEUSXWheat Futures

Jump in natural gas and copper against a decline in oil pressured by political statements and interest rate expectations

Divergent movements dominated the commodities market with a recovery in natural gas and copper against continued selling pressure on oil and silver. Natural gas prices saw a notable rise during the session, with (UNG) contracts jumping by +5.85% and (NGUSD) contracts by +5.65%. This momentum comes at a time when EQT announced plans to increase natural gas production in 2026 while reducing capital expenditure, which boosted positive expectations for the sector. This coincided with a slowdown in U.S. national activity according to the Chicago Fed index, which recorded -0.04, lower than the expectations of 0.2, indicating a complex economic environment affecting risk appetite in the energy sector. WTI crude oil prices fell by -2.00% and Brent crude by -1.84%, influenced by President Trump's statements regarding potential U.S.-Iran talks, which eased the geopolitical risk premium. This decline occurred despite factors supporting prices such as the closure of the Sharara field in Libya and escalating tensions in the Bab el-Mandeb Strait. Data also showed a 48% jump in India's oil import bill to reach $74.8 billion, reflecting continued high costs despite current price pressures in global markets. Copper contracts rose by +2.11%, continuing their winning streak for the sixth consecutive day, driven by a decline in inventories in China. Conversely, precious metals faced pressure as the price of silver broke the $65 barrier downward due to anticipation of a hawkish monetary policy from the Federal Reserve. Despite these pressures, China's gold imports remain strong, exceeding 1,000 tons in the first eight months of 2026, reflecting continued investment demand in Asian markets despite global price volatility.