Oil is on the rise in early morning trade, while Goldman Sachs ( GS ) reported that crude is likely to strengthen to $85 to $95 a barrel, as the investment bank maintained its "overweight" recommendation on commodities in general. The investment bank said that demand for commodities from emerging markets and limited supply growth will support prices toward the end of the year. Still, there is concern that the global economy remains sluggish, particularly as Japan reported earlier in the trading day that the nation's nominal second quarter GDP totaled $1.288 trillion, less than analysts' expectations and below China's total GDP. Gold is gaining ground too amid persisting concerns about the global economic recovery that continues to bolster demand for safe havens. A slide in European equities and a decline in the greenback has also boosted demand for the yellow metal. At 0750 ET, Brent crude is up 0.3% at $75.30 a barrel, while light sweet crude is also 0.3% higher at $75.65 a barrel, and natural gas is down 0.2% at $4.32 a million British thermal units. Gold is up 0.6% at $1,224.00 an ounce, while silver is up 0.5% at $18.26 an ounce, and copper is up 0.5% at $3.29 a pound. BP plc ( BP ) said over the weekend that it has suspended its relief well operation to plug its Gulf of Mexico well until the company completes an analysis of complications that may result in a new oil leak. Shares in the oil giant are down over 2% pre-market on the NYSE. Australian coal producer Caledon Resources plc (CDN) said it is no longer in an offer period, having already received several takeover approaches. The company's largest shareholder, Polo Resrouces Ltd (POLO), had withdrawn its offer, and since then, a number of other groups have expressed interest but all are still at an early stage, Caledon said. In the mining sector, Vedanta Resources plc (VED)will buy up to 60% of Cairn India Ltd (532792) for $9.6 billion to gain access to India's biggest onshore oil field. Vedanta will pay a 32% percent premium over Cairn India's average closing price over the past 90 days, and the company will borrow up to $6.5 billion to fund the acquisition. Xstrata plc (XTA) expects demand for coal for steelmaking and power production is strong due to surging demand for China and Inidia, according to its chief executive for coal Peter Freyberg. The mining giant expects to make a development decision on a $5.3 billion Wandoan thermal coal project in Queensland by next year, he said in a speech at an industry conference in Brisbane.

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