Commodity Capsule: Brent crude oil climbs to two months high; gold soars; copper slips | Watch video

Commodity Capsule: Oil prices climbed to a two-month high on Monday after a drone attack on US forces in Jordan added to worries over supply disruption in the Middle East.

Houthi rebels stepped up their attacks on vessels in the Red Sea

Russian refined product exports are set to fall, with several refineries under repair following drone attacks.

Brent crude futures surged nearly 5 per cent in two trading sessions to near $84 a barrel and US crude oil futures past $79/bbl.

Both the crude oil benchmarks gained 6.5 per cent every week, the best weekly performance in 3-5 months.

Commodities trader Trafigura was assessing security risks of further Red Sea voyages after its tanker was attacked by Yemen's Houthi group last week.

Positive US economic growth and signs of Chinese stimulus boosted demand expectations.

On Feb 1, leading ministers from OPEC+ will meet online.

Copper prices opened this week lower on Monday, with pressure from a steady dollar ahead of U.S. economic data, while subdued demand outlook from top consumer China also weighed on sentiment.

Copper on the London Metal Exchange slid under $8,550 per metric ton, having gained 2.4 per cent last week, its biggest weekly rise since November.

Copper contract on the Shanghai Futures Exchange little moved at 68,000 -69,000 yuan per ton.

The dollar started the week on a steady footing as investors took stock of U.S. economic data ahead of the Federal Reserve policy meeting this week. 

Escalating geopolitical tensions in the Middle East kept risk sentiment in check.

China's industrial firms recorded 2nd straight yearly decline in their profits in 2023.

China's securities regulator said it will fully suspend the lending of restricted shares effective from Monday, in policymakers' latest attempt to stabilise the country's stock markets following recent sharp falls.

Gold prices rose on Monday as escalations in the Middle East triggered safe-haven buying.

Traders awaited US Federal Reserve's chair Jerome Powell's remarks at the end of its two-day policy meeting this week for interest rate outlook.

Gold was inched higher to $2,025 per ounce.

The US economy grew faster than expected in the fourth quarter as inflationary pressures subsided amid strong consumer spending, indicating that the economy kicked off 2024 on a strong note.

On the physical side, China's gold premiums climbed last week as additional stimulus measures aided sentiment, days before Lunar New Year celebrations begin.

COMEX gold speculators cut their net long position by 24,019 contracts to 76,615 in the week ended Jan. 23, data showed on Friday.

Markets widely expect the US Fed to stand pat on rates at its policy meeting on Jan. 30-31, but attention will largely be on comments from Powell.

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