Commodity Capsule: Brent crude marginally rises; gold in range; copper trades higher

Commodity Capsule: Oil prices rose slightly on Tuesday amid fears Middle East tensions could disrupt supply.

Traders turned cautious ahead of key US inflation data and OPEC monthly report due today.

Prices were rangebound for the second straight session as a recent rebound rally in crude now appeared to be running out of steam.

Israel kept up its offensive against the Palestinian group, while Yemen’s Houthi group continued to attack vessels in the Red Sea.

Brent oil futures hovered at $82 a barrel, while West Texas Intermediate crude futures rose past $77 a barrel.

Trading volumes in crude oil benchmarks were held back by a week-long holiday in China.

Focus was now squarely on US CPI inflation data due later on Tuesday.

Inflation data from the UK and GDP data from the eurozone were on tap later in the week.

The monthly report from Organisation of Petroleum Exporting Countries is due later on Tuesday.

The group kept its production levels steady during a recent meeting and said that it expected oil demand to improve substantially in the next two years.

The monthly report from the International Energy Agency is due on Thursday.

Gold prices were stuck in a tight range on Tuesday as investors refrained from making big bets ahead of the US inflation report.

CPI report could give a fresh perspective on how soon, and by how much, the Federal Reserve could cut interest rates this year.

Global gold futures were almost unchanged at $2,032/Oz.

Trading volume is expected to be thin with markets in China and Hong Kong closed for the Lunar New Year holidays.

All eyes are on January US consumer price index data due later in the day.

Americans reported a fairly stable outlook for inflation at the start of the year-- a New York Fed survey.

Copper prices edged higher on Tuesday amid the Chinese Lunar New Year holiday as traders awaited US inflation data for cues on the Federal Reserve's interest rate cuts.

Copper on the London Metal Exchange moved past $8,300 a metric ton.

Red metal recovered in the last two trading sessions; Bouncing close to $200 a tonne off, a three-month low, touched last week.

The market expects the US consumer price index for January – due to be released later in the day – to give the Fed further confidence that inflation is slowing towards its 2 per cent target.

Falling US currency makes dollar-priced metals cheaper for holders of other currencies, which could boost demand.

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