Copper prices rose on Friday amid optimism about further government support in China for the economy, while some investors bet that prices have reached their bottom earlier this month.

Copper three-month futures at the London Metals Exchange rose 0.9% to $9328 a tonne, after a 0.7% rise so far this month.

Prices were boosted after a report indicated China is allowing homeowners to refinance nearly $5.4 trillion worth of mortgages to lower borrowing costs. 

China intensified its efforts to support the struggling real estate market, a major source of demand on industrial metals.

Copper futures closed up 0.1% today at the Shanghai Futures Exchange to 74,220 yuan per tonne, up 0.5% this month. 

Actual Chinese demand on copper was curbed, but the minerals market in Shanghai noticed a spike in Chinese imports of copper wires and cables. 

Some investors were also encouraged after copper reached a 4-? month low in August, moving down 22% from its May record highs and reaching a proper bottom that could lead to a bounce later on.

Aluminum prices rose 1.1% at the London Metals Exchange to $2485 a tonne, while nickel rose 0.1% to $17025, as Zinc rose 1.3% to $2914, while lead rose 1.5%, as tin rose 0.6% to $32545 a tonne. 

Otherwise, the dollar index rose 0.3% as of 16:51 GMT to 101.6, with a session-high at 101.6, and a low at 101.6.

In American trade, copper December futures fell 0.5% as of 16:48 GMT to $4.20 a pound. 

• Supply disruptions in Africa’s biggest oil producer
• Prices about to mark second monthly loss in row

Oil prices lost 3% in American trade on Friday, resuming losses and marking one-week lows after reports that OPEC+ will raise output in October. 

Oil prices are about to register the second monthly loss in a row amid mounting concerns about global demand, as China’s economy continues to struggle.

Prices

US crude fell 3% today to $73.55 a barrel, the lowest in a week, with a session-high at $76.55.

Brent fell 2.6% to $76.74 a barrel, the lowest since August 23, with a session-high at $79.49.

On Thursday, US crude rose 2.2%, while Brent added 1.8%, the first profit in three days on hopes for improving US demand.

OPEC+ 

Six different sources from OPEC+ told Reuters that eight members of the global alliance are ready to execute a scheduled production hike of 180 thousand bpd in October.

The sources said that the production hike plans are intact, with hopes that upcoming Federal Reserve rate cuts would boost economic growth.

Saudi Arabia’s energy minister Abdelaziz Bin Salman said recently that OPEC+ might pause or reverse production hike plans if it were decided that markets weren’t ready.

Libyan Output

Goldman Sachs expects the ongoing Libyan production outage to be short-termed, estimating a drop of 600 thousand bpd in September, and 200 thousand bpd in October. 

Libya is normally producing 1.2 million bpd, with most of its output exported to global markets, mainly Europe. 

Libya is torn apart by two competing governments in Tripoli and Benghazi, with the Benghazi government halting production amid a dispute with the Tripoli government about who should lead the Central Bank. 

Forces in eastern Libya, controlled by General Haftar, have the ability to shut down large swathes of production and infrastructure in the east. 

US Stocks 

The Energy Information Administration reported a drawdown of 0.8 million barrels in US crude stocks last week to 425.2 million barrels, while analysts expected a drop of 2.7 million barrels. 

Gasoline stocks fell 2.2 million barrels to 218.4 million barrels, while distillate stocks fell by 0.3 million barrels to 123.1 million barrels. 

US Output

The EIA also reported a drop of 100 thousand bpd in US crude output last week to a total of 13.3 million bpd, down from the record high of 13.4 million bpd.

Monthly Trades

Oil prices are down 6% on average this month on track for the second monthly loss in a row.

Global Demand 

OPEC reduced its forecasts for global demand growth by 135 thousand bpd in the August report, due to weakness in Chinese demand.

The International Energy Agency said global demand rose in the second quarter by the slowest pace since late 2022, at just 710 thousand bpd. 

The IEA said that weak growth in China is curtailing global gains, with Chinese oil demand shrinking in June for the third straight month.

Official data showed US personnal income rose 0.3% in July, beating estimates of a 0.2% rise, and up from June's 0.2% increase. 

Official data showed US personal spending up 0.5% in July, matching expectations and up from 0.3% in the previous reading.