Commodity Capsule: Brent crude oil prices on rise; Base metals under pressure I Watch video

Oil prices rose in Asian trade on Wednesday, sticking to a three-month high as industry data pointed to a substantially larger-than-expected drawdown in US inventories over the past week.

Data from American Petroleum Institute showed that the US crude inventories likely shrank by 15.4 million barrels in the week to July 28.

Gains are supported by a softer dollar, as the index hovers 102 level.

Both contracts resumed rally after small losses in the prior session, hovering at their highest levels since mid-April.

Higher oil prices saw the US government withdraw an offer to buy six million barrels of oil to refill the Strategic Petroleum Reserve.

The focus will be on the meeting of the Organisation of Petroleum Exporting Countries on Friday.

Saudi Arabia is widely expected to extend its current production cuts into September.

Gold gains as US dollar soften, yields stumble

Gold prices moved little on Wednesday after losses in the prior session saw futures lose a key bullish level.

Bullion has some support from the softer dollar index.

The dollar trimmed some gains after rating agency Fitch cut its US sovereign rating to AA+ from AAA.

Some signs of recovery in the US manufacturing sector and construction spending boosted the dollar in the prior session.

Gold spot and futures instruments slid between 0.6 per cent and 1 per cent on Tuesday, with December gold futures also losing the key level of  $2,000/ounce.

Copper slips amid global manufacturing slowdown

Copper prices pare gains on Wednesday after losing major levels in the prior session.

LME metals came under pressure from a stronger dollar and weak manufacturing data from across the globe.

Some signs of recovery in the US manufacturing sector and construction spending boosted the dollar.

Yangshan copper premium fell to $29/metric ton; the lowest since May 18.

Weak data from China weighed on the demand outlook for metals, though they raised hope for government stimulus into sectors.

Global grains post sharp surge

CBoT wheat, corn recovers from two-week lows.

Chicago soybean, soy oil, and Malaysian palm bounce from three-week lows.

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