Energy Jitters, Gold Dips, and Wheat Gluts: Commodities This Week

Oil Rallies as U.S. Sanctions Tighten Venezuelan Supply

As of May 29, 2025, energy markets are once again in the spotlight following the U.S. government’s decision to block Chevron from exporting Venezuelan crude. The move has reignited concerns over global oil supply, nudging Brent crude up by 0.4% to $64.34 per barrel and U.S. West Texas Intermediate (WTI) to $61.13.

While geopolitical uncertainty is adding a risk premium, expectations that OPEC+ may boost production and China’s record-high oil inventories have helped temper the rally. The International Energy Agency (IEA) forecasts global oil supply to grow by 1.6 million barrels per day this year, hitting an average of 104.6 million barrels daily—suggesting medium-term price stabilization if demand doesn’t outpace this increase.

See Reuters for full coverage of the Chevron sanctions and oil price response.

Meanwhile, in the energy infrastructure space, the Australian mining sector is watching closely as debates intensify over the future of Mount Isa’s copper smelter and Townsville’s refinery. Projects like CopperString are gaining momentum as stakeholders push for greater electricity access to sustain regional mineral operations.

Agriculture Surprises and Metal Markets Face Strategic Shifts

India’s wheat harvest has defied forecasts, yielding the largest procurement in four years. The Food Corporation of India acquired 29.7 million metric tons of new-season wheat, which analysts believe will eliminate any need for imports and add pressure on international wheat prices. This bumper crop could have ripple effects across Asia’s food inflation metrics and is already sparking conversations around global grain supply dynamics.

In the metals sector, unconventional actors are entering the scene. Tether, issuer of the USDT stablecoin, announced its 70% stake acquisition in Adecoagro, a Latin American firm involved in agriculture and energy. This move signals the growing interest of crypto-native firms in commodity-backed assets as they seek to increase token utility and hedge volatility.

On the precious metals front, gold slipped 0.2% to settle at $3,294.90 per ounce. While investor demand remains resilient, price movement has been volatile due to macroeconomic uncertainty. Markets are closely watching U.S. Federal Reserve communications, with many traders waiting on signals about future interest rates and inflation expectations.

Read Axios for more on Tether’s entry into the commodity trading space.

With energy volatility, agricultural surprises, and crypto-backed commodity plays reshaping fundamentals, traders should brace for cross-sector shifts. Expect further turbulence as weather events, monetary policy, and geopolitics continue to set the tone for commodities heading into June.