Commodity Capsule: Oil futures nudged higher on Monday, extending gains on expectations of OPEC+ deepening supply cuts to shore up prices

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Crude oil prices have fallen for four weeks on easing concerns of Middle East supply disruption amid the Israel-Hamas conflict.

Both the crude oil benchmarks settled 4 per cent higher on Friday as the market expects Organisation of the Petroleum Exporting Countries and their allies to consider making additional oil supply cuts when it meets on November 26.

Oil prices have dropped by almost 20 per cent since late September while prompt inter-month spreads for Brent and WTI slipped into contango last week. 

Prompt prices are lower than those in future months in a contango market, signalling sufficient supply.

"Our statistical model of OPEC decisions suggests that deeper cuts should not be ruled out given the fall in speculative positioning and in time spreads, and higher-than-expected inventories," Goldman Sachs said in a note.

London copper prices rose to their highest in eight weeks on a softer dollar and hopes of improving demand for China's property sector.

Copper on LME advanced past $8,300 per metric ton, the highest since September 29.

The dollar slid to a 2.5-month low as traders reaffirmed their belief that US rates have peaked and turned their attention to when the Federal Reserve could begin cutting rates.

China's central bank and financial regulators pledged on Friday to ensure financing support for the property sector.

Gold prices edged lower on Monday after hitting a two-week high in the last session.

The yellow metal is weighed by a slight uptick in U.S. Treasury yields, although expectations that US rates have peaked underpinned bullion.

Benchmark U.S. 10-year Treasury yields edged up to 4.46 per cent after dropping to a two-month low.

The slowing jobs market in the US and weaker-than-expected consumer inflation report last week prompted market participants to revise their forecasts for future Federal Reserve action.

Traders now widely expect the Fed to leave rates unchanged at its Dec. 12-13 policy meeting.

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