Commodity Capsule: Brent crude oil at 10-month high; gold slips; base metals range bound

Commodity Capsule: December Brent Crude jumped past $95/barrel on Thursday to its highest in over ten months as a steep drop in crude stocks in the United States added to worries about tight global supplies.

US WTI November Crude was witnessed rising above $95 for the first time since August last year.

US crude stocks fell by 2.2 million barrels last week to 416.3 million barrels, government data showed, far exceeding the 320,000-barrel drop analysts expected.

Crude stocks at the Cushing storage hub, a delivery point for U.S. crude futures, fell by 9,43,000 barrels in the week to just under 22 million barrels, the lowest since July 2022.

Gold hit six and a half month lows under $1,900-an-ounce 

Support amid the continued flow of investment money towards dollar and Treasury yields.

International Spot gold was at $1,875; the lowest spot gold had gotten to since March 10, when it plumbed $1,870.28.

The dollar hit a 10-month high, while Treasury yields climbed fresh 16-year peak, as investors bet the US economy will outperform its competitors in an environment of high interest rates.

Market focus now turns to the revised US GDP growth rate for the second quarter and weekly jobless claims due later in the day.

The US August personal consumption expenditures (PCE) price index is due on Friday.

Iron ore, Base Metals Largely Range – bound ahead of holiday break in China

Iron ore futures were largely range-bound on Thursday, as traders preferred to take a watchful stance ahead of upcoming holiday break starting from September 29, in China.

Prices of the key steelmaking ingredient ended the week with a slight weakness as demand concerns, due to lingering property woes in China dominated.

LME base metals are trading in a narrow range amid pressure from the firm dollar index, and US treasury yields.

LME Copper hovers four-month lows under $8100 a ton.

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