Commodity Capsule: Brent crude oil gains; gold rises; copper soars | Watch video

Commodity Capsule: Oil prices regained some ground on Wednesday amid concerns over attacks on shipping in the Red Sea and a drop in the dollar index.

Brent crude futures hovered past $82.50/barrel. US WTI futures edged past $77.

Brent and WTI contracts fell 1.5 per cent and 1.4 per cent respectively from near three-week highs on Tuesday.

Premium for immediate US crude futures to second-month contract more than doubled to its widest level in roughly four months.

Washington again vetoed a draft United Nations Security Council resolution on the Israel-Hamas war, blocking a demand for an immediate humanitarian ceasefire.

Refinery throughput in Russia has fallen by 7 per cent since the start of the year, after facilities were damaged by Ukrainian drone attacks --Russian Energy Min.

Concerns that rate cuts by the Federal Reserve could take longer than thought have weighed on the outlook for oil demand. 

US inflation data last week pushed back expectations for the imminent start of the Fed's easing cycle, now forecasting a cut in June.

Gold prices rose for a sixth straight session on Wednesday, supported by a weaker dollar and safe-haven buying, ahead of Fed minutes from latest policy meeting.

Global gold futures have pushed past $2,040 an ounce - its highest since Feb. 9.

The dollar index extended losses for the third straight day, turning the greenback-priced bullion more appealing to overseas buyers. 

Houthis persisted in their attacks on shipping lanes in the Red Sea and Bab al-Mandab Strait, with at least four more vessels hit by drone and missile strikes since Friday.

Minutes of the Fed's January policy meeting late evening could offer more insights into the timing of widely expected interest rate cuts.

Copper prices extended gains on Wednesday to hover near a three-week high, supported by a weak US dollar and hopes of a strong demand outlook in China.

Copper on the London Metal Exchange pushed towards $8,550/metric ton. In the previous session, the contract hit its highest level since Feb. 2.

March copper contract on the Shanghai Futures Exchange rose to 68,940 yuan/ton.

The dollar weakened broadly on Wednesday as it tracked the global decline in bond yields. 

China announced its biggest reduction in the benchmark mortgage rate on Tuesday, as authorities sought to prop up the struggling property market and broader economy.

The global refined copper market showed a 20,000-metric-ton surplus in December, compared with a 123,000-metric-ton deficit in the prior month-- International Copper Study Group.

Meanwhile, LME aluminum climbed to a three-week high past $2,250 a ton.

Global primary aluminium output in January rose 2.4 per cent year-on-year to 6.039 million tons-- International Aluminium Institute.

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