To The Moon

Crude oil prices advanced as traders weighed disruptions to oil supplies from the Black Sea region and market tremors triggered by the Greenland crisis. With no signs of easing tensions between the US and Europe over Greenland, a sell-off in US stocks and bonds, coupled with an overnight plunge in Japanese government bonds, prompted investors to seek safe-haven assets, boosting both gold and silver to new record highs, while most base metals on the London market fell. Crude Oil: Prices Rise Amid Focus on Black Sea Supply Outlook and Greenland Situation Oil prices climbed as traders assessed the impact of supply disruptions in the Black Sea region and market volatility stemming from US President Trump's planned acquisition of Greenland. The February WTI contract, which expired Tuesday, rose 1.5%, settling above $60 per barrel. The more active March contract saw a similar gain. Supply disruptions provided support for prices, as Kazakhstan's largest oil producer recently suspended production at the Tengiz and Korolev oil fields following a generator fire. Reports indicated the Tengiz field would remain shut down for another 7 to 10 days. Kazakhstan had already reduced crude output after drone attacks affected the loading terminal of the Caspian Pipeline Consortium (CPC) in Russia. "Crude is higher this morning due to ongoing concerns about CPC loadings, which remain constrained following recent attacks in Ukraine," noted Rebecca Babin, Senior Energy Trader at CIBC Private Wealth Group. "Meanwhile, broader geopolitical risks remain elevated, keeping traders attuned to related news." President Trump once again lashed out at allies on social media, while Europe responded firmly to his economic threats issued under the pretext of seizing Greenland. The escalation of tensions weighed on stock markets, drove gold and silver prices to record highs, and sparked fears of a US-Europe trade war, although the direct impact on oil prices has been more moderate so far. The February WTI contract expiring Tuesday gained 1.5%, settling at $60.34 per barrel; The more active March contract increased 1.7%, reaching $60.36 per barrel; March Brent crude rose 1.5%, settling at $64.92 per barrel. Precious Metals: Gold Prices Reach New Peak As tensions between the United States and Europe over Greenland showed no signs of abating, both gold and silver prices hit fresh all-time highs on Tuesday. Spot gold surged over 2% at one point, breaking through $4,766 per ounce; spot silver climbed nearly 1.6%, approaching $96 per ounce. A plunge in Japanese government bonds that rippled through global bond markets, combined with a weaker US dollar, made safe-haven trades the dominant theme, further bolstering the performance of gold and silver. As of 3:05 PM Eastern Time Spot gold was up 1.9% at $4,757.92 per ounce; Spot silver was down 0.1% at $94.2832 per ounce. Base Metals: Copper Prices Decline Amid a risk-off mood enveloping global markets, most base metals on the London Metal Exchange trended lower. At the London market close, LME copper fell 1.6% to $12,753.5 per metric ton; LME aluminum declined 1.6% to $3,107.5 per metric ton; LME nickel dropped 2.9% to $17,614 per metric ton; LME zinc decreased 1.5% to $3,173 per metric ton; LME tin edged up 0.3% to $49,412 per metric ton; LME lead fell 1.6% to $2,028.5 per metric ton.