The price of oil soared on Monday following strong manufacturing data from China and the United States, the world's biggest energy consumers.
New York's main contract, light sweet crude for December, soared $US1.52 to close at $US82.95 per barrel.
In London, Brent North Sea crude for delivery in December delivery jumped $US1.47 to settle at $US84.62 a barrel.
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Traders pored over data showing that Chinese manufacturing activity hit a six-month high in October, a sign that recovery in the world's second-biggest economy and top energy consumer has consolidated.
And in the United States, the world's biggest oil consumer, a key industrial survey showed manufacturing unexpectedly picked up steam in October, raising hopes for a strong final quarter that could underpin the flagging US economic recovery.
The Institute of Supply Management said its survey of purchasing managers nationwide revealed strong gains in new orders and production, pushing up its index to 56.9 per cent, from 54.5 per cent in September.
The surge was much stronger than a dip to 54.0 per cent expected by most analysts.
Elsewhere, Saudi Oil Minister Ali al-Nuaimi said Monday that current oil prices at above $US80 a barrel are within a "very comfortable zone".
PRECIOUS METALS
December gold fell $US7.00 to $US1,350. December silver also fell, by 1.2 US cents to $US24.552 per fine ounce. January platinum rose $US4.40, however, to $US1,711.50, while December palladium also rose, by $US3.60 to $US648.70.
BASE METALS
Copper rose by more than two per cent on Monday after US and Chinese manufacturing data boosted demand prospects and was also supported by a backdrop of increasing market tightness.
Copper for three-months delivery on the London Metal Exchange closed at $8,300 a tonne, versus a close of $8,199 on Friday when caution about the scale and scope of US monetary easing drove it to a three-week low.
But the copper price lost some power as the dollar turned positive against a basket of currencies after the US manufacturing data.
There is currently a marked inverse correlation between movements in the US currency and dollar-priced commodities.
Three separate firms have, in the past month alone, announced plans to launch physically backed exchange-traded products in copper, causing worries about the supply in a market where stocks are dwindling.
The latest LME data showed copper stocks fell by 925 tonnes to 367,575 tonnes, down around a third since hitting a 6 1/2 year peak of 555,025 tonnes in February.
And strike risks have intensified. Union workers at Chile's giant Collahuasi mine, the world's number three copper mine, began mediated wage talks on Friday with its operator.
Aluminium closed at $2,372 a tonne from $2,345, zinc closed at $2,449 a tonne from $2,423, while battery material lead was at $2,465 a tonne from $2,448.
The latest LME data showed one entity held a significant 50-80 per cent of LME lead warrants, tom and cash positions, and two entities held between 40-50 per cent of tin warrant, tom and cash positions.
Tin closed at $25,600 a tonne from $25,600, while nickel was last quoted at $23,245/23,250 a tonne from $22,900 a tonne.
