Commodity Capsule: Brent crude oil inch higher; gold prices in tight range

Commodity Capsule: Oil prices were slightly higher on Wednesday after industry data showed a surprise drop in US crude stocks last week.

Markets continue to keep a close eye on hostilities in the Middle East.

Brent crude futures gained held past $88 a barrel and US WTI crude futures held near $83.50 a barrel.

US crude inventories fell 3.237 million barrels in the week ended April 19-- American Petroleum Institute.

Traders will be watching for official US data on oil and product stockpiles due on Wednesday.

US business activity cooled in April to a four-month low, with S&P Global saying on Tuesday that its flash Composite PMI Output Index fell to 50.9 this month from 52.1 in March.

Gold prices kept to a tight range on Wednesday as further losses in the yellow metal were limited by a weaker dollar.

Anticipation of more cues on interest rates kept traders wary of the yellow metal.

Bullion prices were nursing a sharp drop from recent record highs amid easing tensions over a war between Iran and Israel.

US gold futures expiring in June steadied at $2,340/ounce. Yellow metals were trading about $100 away from a record high hit earlier in April.

Dollar fell under the 106 level, after softer-than-expected purchasing managers index data for April.

Weakness in the greenback helped stem a recent drop in gold.

The lack of escalation in the Middle East has now left bullion vulnerable to fears of higher-for-longer rates.

London copper traded within a tight range on Wednesday, as a recent rally in prices dampened consumption in China.

Supply disruptions primarily caused by Cobre Panama mine closure continued to lend some support.

Copper on the London Metal Exchange surged past $9,800 per metric ton, after a two-day decline.

Cobre Panama was forced to shut in December, reversing global supply of copper concentrate to a supply deficit this year.

Copper prices have rallied so far this year with support from mine closures and upbeat Chinese demand outlook.

Fabricators of copper tubes and wires in China are struggling to pass on higher costs to their customers--ANZ said.

Yangshan copper premium plunged to near zero on Tuesday and the lowest, according to data by Shanghai Metals Market that tracks records back to 2013.

London Metal Exchange moved on Tuesday to stop traders from taking Russian aluminium from its approved warehouses and returning it at a later date to profit from rule changes to comply with new sanctions.'

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