Commodity Capsule: Brent crude advances; Gold steady; copper under pressure | Watch video

Commodity Capsule: Oil prices advanced on Wednesday, extending a recent rebound as signs of supply disruptions in the Middle East persisted.

Industry data pointed to another week of sharp builds in the US product inventories.

Crude prices saw a whipsaw start to the week, falling sharply on Monday as Saudi Arabia slashed prices on its oil sales in the face of weakening demand.

Prices then rebounded amid some hopes that oil markets would tighten due to disruptions in Middle Eastern supply, as the Israel-Hamas war raged on and as Libya suspended output at its biggest oilfield.

Both crude oil benchmarks were now back in sight of levels seen before a sharp drop at the beginning of the week.

Oil prices were nursing an over 10 per cent drop in 2023, as concerns over weak demand and less-tight markets battered prices through most of the year.

American Petroleum Institute showed that US inventories saw a draw of 5.2 million barrels last week, more than expectations for a draw of 1.2 million barrels.

Copper was under pressure on Wednesday as traders assessed global economic headwinds.

Weaker yuan weighed on buying interest from China.

Copper on the London Metal Exchange hovers at $8,367/metric ton

World Bank warned that global growth in 2024 is set to slow for 3rd year in a row, prolonging poverty and debilitating debt levels in many developing countries.

Weighing on sentiment, World Bank forecasts China's economic growth to slow to 4.5 per cent in 2024.

Growing expectations of policy easing in China to shore up its economy resulted in a weaker yuan.

Investors await U.S. inflation data on Thursday for clues on when the Federal Reserve is likely to cut rates.

China will release its trade data this week to gauge prospects for demand in the country.

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Gold prices held steady on Wednesday, as investors refused to make big bets ahead of the US inflation print.

Global gold futures are hovering at $2,035 per ounce.

Bullion prices stood their ground even as the dollar index ticked up and yields on 10-year U.S. Treasury notes remained above 4 per cent. 

Traders are on the lookout for Thursday's US consumer price inflation report which is expected to show headline inflation rose 0.2 per cent in the month and by 3.2 per cent on an annual basis. 

Official US report revealed that consumers expect a decline in inflation while Fed Governor Michelle Bowman stated that the US central bank's monetary policy seems "sufficiently restrictive".

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