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Commodities markets summary

A summary of trading in key commodities markets overseas:

ENERGY

World oil prices have advanced after the US government reported a surprisingly large decline in the nation's oil inventories.

US benchmark West Texas Intermediate for September delivery gained 73 cents to $103.12 a barrel in its first day of trade on the New York Mercantile Exchange.

European benchmark Brent oil for September delivery climbed 70 cents to $108.03 a barrel in London.

A US Energy Information Administration report on Wednesday said American crude inventories tumbled by four million barrels in the week ending July 18.

That marked the fourth weekly decline in a row and was far bigger than the 2.5 million-barrel decline forecast by analysts.

The report also showed stocks at the closely watched trading hub of Cushing, Oklahoma, dropped by 1.5 million barrels.

PRECIOUS METALS

Gold prices edged lower, as negotiators worked to end fighting between Israel and Hamas.

Gold for August delivery, the most actively traded contract, on Wednesday fell $US1.60, or 0.1 per cent to $US1,304.70 a troy ounce on the Comex division of the New York Mercantile Exchange. Prices wavered between gains and losses for much of the day.

US Secretary of State John Kerry said there had been "steps forward" in the diplomacy aimed at ending the fighting between Israel and the Palestinian group Hamas, as he arrived in Jerusalem for talks with Prime Minister Benjamin Netanyahu and Israeli officials.

The intensity of the fighting, however, has raised concerns that the two sides have become entrenched in conflict, making it difficult for negotiators to hammer out a ceasefire agreement.

Silver, which often trades in tandem with gold, was down 0.1 per cent to $US20.995 a troy ounce.

BASE METALS

Base metals on the London Metal Exchange closed mixed as most prices consolidated but copper found support as a major company in China, the world's biggest buyer of the metal, avoided a debt default.

At the close of open-outcry trading in the London ring on Wednesday, LME three-month copper was up 0.1 per cent at $US7,042 per metric ton.

Aluminium fell 1.3 per cent to $US2,015 per ton, while nickel closed 0.3 per cent lower at $US19,030 per ton. Zinc rose 0.1 per cent to $US2,364.50 per ton.

Copper, the flagship of the LME complex, found support as investors weighed the news that Huatong Road & Bridge Group Co, facing a $US64.5 million ($A69.79 million) bond repayment, found a way to pay at the last minute.