Crude oil extended last week's gains and continued climbing higher as Ukraine intensified strikes on Russian petroleum infrastructure and markets anticipated Federal Reserve rate cuts this week. Expectations for Fed easing also boosted gold and copper prices, with gold reaching new record highs and copper surging to 15-month peaks.

Oil: Crude Prices Rise as Ukraine Escalates Attacks on Russian Petroleum Infrastructure

Oil prices advanced on Monday, extending last week's upward momentum, as traders weighed measures aimed at restricting Russian oil flows against expectations of supply surpluses later this year.

WTI crude gained 1%, closing above $63 per barrel, following a 1.3% increase the previous week. Ukraine is intensifying strikes against Russian oil infrastructure, with weekend drone attacks targeting the Kinef refinery, one of the country's largest refineries. This assault came days after attacks on the key Baltic export terminal Primorsk.

President Trump also reiterated that Europe must cease purchasing Russian oil, having previously stated he was prepared to advance "major" sanctions on Russian petroleum, contingent on NATO countries taking similar action. Treasury Secretary Bessent subsequently indicated that the U.S. would not follow through on threats to penalize Russian oil unless Europe also took action.

Traders are now focusing on the Federal Reserve policy meeting, with widespread expectations that the Fed will restart its rate-cutting cycle. Lower rates could stimulate economic activity and boost oil demand, though market participants remain divided on the extent of support.

October WTI crude futures in New York rose 1% to close at $63.60 per barrel.

November Brent crude advanced 0.7% to $67.44 per barrel.

Precious Metals: Gold Reaches New Heights

Gold climbed to fresh record highs as traders positioned for the Fed's anticipated monetary policy easing this week and searched for clues about further rate cuts this year.

Spot gold briefly broke through $3,685 per ounce on Monday, following four consecutive weeks of gains. After signs of weakening in the U.S. labor market, investors expect a 25 basis point rate cut this week. Interest rate swap markets reflect expectations for at least one additional cut by year-end, with strong probability of a third reduction within the year.

These expectations have pushed U.S. Treasury yields to multi-month lows and weakened the dollar, making non-interest-bearing gold more attractive. Whether the Fed will challenge these market bets this week remains a key focus for investors.

As of 3 p.m. New York time, spot gold was up 0.93% at $3,676.97 per ounce.

Base Metals: Copper Hits 15-Month High

Copper prices surged to 15-month highs driven by improved risk appetite, as traders prepared for the Fed's expected rate cut this week and sought clues about potential further policy easing later this year.

At London market close:

LME copper futures rose 1.18% to $10,186.5 per ton; LME aluminum gained 0.41% to $2,700.5 per ton; LME nickel increased 0.29% to $15,436.0 per ton; LME zinc advanced 0.74% to $2,979.0 per ton.