Commodity Capsule: Brent crude oil on multi-month highs; metal rangebound | Watch video

Oil firms to multi-month highs, eyes on US inflation data

Oil climbs to multi-month peaks as the market weighed supply tightness concerns with fuel demand worries ahead of US inflation data.

Oil prices have been buoyed by worries about supply tightness as tensions between Russia and Ukraine in the Black Sea region could threaten shipments of Russian oil, on top of extended production cuts by Saudi Arabia.

Saudi Arabia plans to extend its voluntary production cut of 1 million barrels/day for another month to include September.

Russia said it would cut oil exports by 300,000 bpd in September.

The market is awaiting July Consumer Price Index from the United States, due on Thursday

US crude inventories rose by 5.9 million barrels in the last week to 445.6 million barrels-- Energy Information Administration.

Metals rangebound

Copper prices inched higher on Thursday, as the market bet on the Chinese authorities releasing economic support measures to perk up growth.

Pressure on the Dollar index supports metals.

Copper along with other metals was battered by a string of weak economic readings from China, pointing towards lacklustre recovery in July after a weak second quarter.

China’s consumer prices slipped into deflation, while imports and exports shrank much more than expected in July.

China’s copper imports contracted last month

Gold prices hovered at one-month lows

Gold prices hovered at one-month lows on Thursday, hunkered down ahead of key U.S. inflation data.

The yellow metal has been trading down substantially over the past week, under pressure from a stronger dollar and rising yields.

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