Commodity Capsule: Brent crude oil decline for 7th session; gold falls, copper advances | Watch video

Commodity Capsule: Oil benchmarks were headed for a seventh straight weekly decline on worries over a global supply surplus and weak Chinese demand.

Prices recovered ground on Friday after Saudi Arabia and Russia called for more OPEC+ members to join output cuts.

Both benchmarks slid to their lowest since late June in the previous session, a sign that many traders believe the market is oversupplied. Brent and WTI are also in contango, a market structure in which front-month prices trade at a discount to prices further out.

Brent and WTI crude futures are on track to fall 4.5 per cent and 4.8 per cent for the week, respectively, their biggest losses in five weeks.

Concerns about China's economy and surging U.S. oil output have also fuelled the market's downturn this week.

Chinese customs data showed its crude oil imports in November fell 9 per cent from a year earlier as high inventory levels, weak economic indicators, and slowing orders from independent refiners weakened demand.

Gold prices were set to mark their first weekly fall in four after the dollar firmed, but traded steadily on Friday.

Investors stayed cautious ahead of key jobs print due later in the day to gauge the potential for US rate cuts by March.

Bullion fell 1.1 per cent for the week so far.

US gold futures edged to $2,050 an ounce.

Bullion scaled an all-time peak of $2,151 earlier this week on Monday on elevated bets for a cut by the US Federal Reserve, before dropping more than $100 on uncertainty over the cut's timing.

The dollar index was on track to snap three straight weeks of losses.

Yields on benchmark 10-year Treasury notes slipped this week but retreated from a three-month low on Friday.

Copper advanced on Friday as data showing improved exports from China signalled better demand prospects for the commodity sector.

Copper on the London Metal Exchange surged to $8,400/metric ton

On a weekly basis, LME copper is set for its first fall in four, amid a stronger dollar.

China's exports grew for the first time in six months in November.

China's November copper imports climbed 10.1 per cent m/m to the highest in almost two years.

Premium to import copper into China hovered around a one-year high level at $112.50 a ton, indicating rising demand to get the metal into China.

Both, LME aluminum and LME zinc were on track for the biggest weekly decline in two months.

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