Commodity Capsule: Brent crude oil edges higher; gold hovers near a two-month high | Watch video

Commodity Capsule: Oil prices edged up on Friday and were set to end the week modestly higher.

Oil prices nudged higher on Monday after OPEC+ members agreed to extend voluntary oil output cuts to the end of the second quarter. 

The cartel's decision was in line with market expectations, while Russia pledged to cut production and exports.

Brent futures were hovering just under $84/barrel. US WTI hovered towards $80/barrel, edging close to highs seen during early November.

The Organisation of Petroleum Exporting Countries and its allies called OPEC+ are extending their voluntary oil output cuts of 2.2 million BPD into the June quarter.

Prompt Brent inter month spread widened 5 cents to 90 cents/barrel while the six-month spread gained 15 cents to $4.49 in backwardation, a sign that traders are expecting supply to tighten ahead.

Meanwhile, Washington has insisted the ceasefire deal between Israel and Hamas is close and has been pushing to put in place a truce by the start of Ramadan.

Gold prices hovered near a two-month high on Monday, after softer US economic data last week raised hopes for a June interest rate cut by the Federal Reserve, sending dollar and treasury yields lower.

Global gold futures edged lower to $2,090 per ounce – its highest since Dec. 28.

Benchmark US 10-year Treasury yields and the dollar index retreated on Friday after US manufacturing slumped further in February and construction spending fell in January. 

The University of Michigan's consumer sentiment survey came out weak.

Markets took stock of new troubles at regional US lender New York Community Bancorp, increasing appeal for bullion.

Last week, the annual increase in US inflation in January was the smallest in nearly three years, keeping the June rate cut from the Fed on the table.

The next major US economic release will be February's employment report due on Friday.

Most nonferrous metals declined on Monday, as weak manufacturing data from China weighed on the consumption outlook for the sector.

Copper on the London Metal Exchange eased under $8,500/metric ton.

Inventories of copper in SHFE warehouses continued to climb and were last at 214,487 tons, the highest since March last year.

China's manufacturing activity in February shrank for a fifth straight month, an official survey showed on Friday.

However, poor data raised pressure on China to roll out more stimulus measures as the parliament prepares for key annual meetings during March 5-11.

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