Commodity Capsule| Brent crude oil falls; gold steady; copper slips marginally | Watch video

Commodity Capsule: Oil prices fell on Thursday, extending losses from the previous session, as signals of higher supply from the US met worries about lackluster energy demand from China.

WTI's front-month contract traded below the price for 2nd month, a structure known as contango, suggesting that investors expect prices to increase.

US crude stocks rose by 3.6 million barrels last week to 421.9 million barrels--EIA, far exceeding market expectations of a 1.8 million-barrel rise.

US crude production held steady at a record 13.2 million barrels per day

China's oil refinery throughput eased in October from the previous month's highs as industrial fuel demand weakened and refining margins narrowed.

Concerns around China's property sector, show that new home prices fell for 4th consecutive month in October, with property sales by floor area down 20.33 per cent year-on-year (YoY).

Copper prices fell slightly on Thursday, easing from near six-week highs, as the US dollar firmed up on economic data that signalled Federal Reserve will likely wait longer before cutting interest rates.

The dollar drew support from better-than-expected retail sales numbers and more signs of cooling inflation, feeding into the narrative for an economic 'soft landing' which would allow the Fed more time before cutting rates.

Copper prices touched a five-week high on Wednesday after positive industrial production data from China boosted sentiment, but gains were constrained by weakness in the property sector and a stronger dollar.

CITI RESEARCH -US, and China support for tripling global renewable capacity could add a further 2.5 Mt to 2030 copper demand in bull case. 

Citi says in its base case, copper is to trade in the $7,500/t-$8,500/t range over the next six to 12 months.

Gold prices steadied on Thursday, but paused a recent recovery rally after stronger-than-expected U.S. retail sales data brewed some uncertainty over the path of US monetary policy.

The yellow metal fell in the last session after two straight days of strong gains, as the dollar recovered from a two and two-and-a-half month low and Treasury yields stemmed recent declines.

Safe haven demand for gold was slightly aided by high-level U.S.-China talks, as Presidents Xi Jinping and Joe Biden met in San Francisco.

The meeting appeared to have prompted some improvement in Sino-U.S. relations, with both parties agreeing to reopen military channels.

Global gold has been hovering $1960 mark, after registering a sharp recovery from a three-week low earlier this week.

ICE Arabica coffee settled up past $1.81 per lb, hovering highest price in nearly five months.

Worries regarding a heatwave in Brazil could hurt fields that are in the development stage for next year's crop.

On the macro front, benign inflation readings in the US and Britain have spurred investors to bet on an end to the global interest rate hike cycle, boosting risk appetite for commodities.

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