Commodity Capsule: Brent crude stable; Gold steady copper under pressure

Commodity Capsule: Oil prices stabilised on Wednesday after sharp moves earlier in the week.

Markets weighed concerns about the U.S. economy and potential supply disruptions from ongoing tensions in the Red Sea.

Brent crude hovers around $76 a barrel, while US WTI crude nears $70 a barrel.

Oil prices slipped for the fourth consecutive session on Tuesday.

The market fell in the previous session as market optimism about aggressive U.S. interest rate cuts ebbed ahead of the release of Federal Reserve minutes and jobs data.

Expectations of ample supply in the first half of 2024 have kept a lid on prices ahead of OPEC+ plans to hold a meeting in early February.

Data from the American Petroleum Institute industry group is due on Wednesday, and data from the US Energy Information Administration is due on Thursday.

Copper was under pressure on Wednesday because the US dollar firmed as optimism about early and aggressive U.S. interest rate cuts waned.

Copper on the London Metal Exchange slid closer to $8,500 per metric ton.

The dollar index on Tuesday recorded its biggest daily increase since October, supported by higher U.S. bond yields.

Investors await U.S. jobs data and European inflation numbers for clues on central banks' policies.

Investors bet the US report will show a robust job market, adding to the argument against the need for rate cuts as early as March.

Recent buying slowed down in China due to seasonal weak demand and strong domestic production in December.

Yangshan copper premium fell to $67.50 per ton, down by 67 per cent from about one month earlier.

Gold prices held steady on Wednesday as investors looked forward to minutes of the last Federal Reserve policy meeting due later in the day

A stronger dollar kept bullion's gains in check.

US gold futures eased to $2,070 per ounce.

The dollar index hovered near a two-week peak hit closer to the 102 mark, helped by a jump in Treasury yields.

Minutes of the US central bank's December policy meeting will be released at 1900 GMT.

Traders have doubled down on bets for interest rate cuts in 2024

Futures markets see a 70 per cent chance of a 25 basis-point rate cut at the March 20 Fed meeting.

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