Commodity Capsule: Base metals shine; crude oil prices drop | Watch video

Oil prices drop

Oil prices inched lower on Wednesday as US industry data showed an unexpected rise in US crude stocks.

U.S. crude oil stocks rose by about 1 million barrels for the week ended June 9.

Both benchmarks climbed over 3 per cent on Tuesday on hopes of rising fuel demand from China.

China's central bank lowered a short-term lending rate.

Prices fell by 4 per cent on Monday on concerns about the Chinese economy after disappointing economic data last week.

The market will closely watch the Federal Reserve meeting outcome which will come late at night as per Indian Standard Time.

Gold, silver hovers near one-week low

Gold prices moved little on Wednesday after three days of losses.

Investors await more cues from the conclusion of the Federal Reserve meeting later in the day.

Soft US inflation data triggered a rally in most risk-driven markets.

Risk appetite in global markets increased as China cut interest rates for the first time in 10 months.

Base metals shine

LME copper hovers near 5-week high, Shanghai copper near 7-week high.

The demand outlook is buoyed by China's latest economic support and subdued dollar.

Dollar hovered near a 4-week low after the smallest annual increase in inflation in more than two years.

Agri commodities are mostly dull barring oilseeds, and edible oils.

CBot Soybean at one month high, near $14/Bushel.

Malaysian palm along with Chinese Soyoil, RBD Palmolein surge to multi-week highs.

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