Copper prices fell on Thursday, despite the US dollar's drop against most currencies, and the industrial metal hit a 1-month low due to investors' risk aversion and concerns over an increase in inventories.

Copper 3-month futures fell 0.7% to $9,343 per tonne in the London Metal Exchange.

Copper futures closed lower by 1.8% to 68,910 yuan or $10,806 per tonne in the Shanghai Metal Exchange.

Analysts believe that China intends to increase copper exports to the London Metal Exchange warehouses, and the dollar strength, are two main factors that are impacting copper prices.

The dollar index fell against a basket of major currencies by 0.1% to 95.7 points as of 14:42 GMT, after hitting a high of 95.8 points and a low of 95.6 points.

Copper September futures fell 0.6% to $4.24 per pound as of 14:35 GMT.

Oil prices continued to fall as the US market opened on Thursday, deepening losses for the second straight day, and hit 6-week low due to growing oversupply fears amid news that the US intends to cooperate with China and Japan for a coordinated release of fuel reserves to reduce energy prices, in addition to the International Energy Agency's warnings of an upcoming increase in global supplies.

US crude fell 1.4% to the lowest level since October 7 at $77.10 a barrel, after opening at $78.20, and hit a high at $78.41, and Brent crude fell 1.1% to the lowest since October 7 at $79.30 a barrel, after opening at $80.18, and hit a low at $80.20.

The US crude fell 3% yesterday, its second straight daily loss and Brent crude fell 2.6%, in its first loss out of 3 days.

Reuters reported that the US has asked major oil consumers including China and Japan to consider releasing crude stockpiles in a coordinated effort to lower global energy prices.

The US administration's attempts come as inflationary pressures accelerate, driven by high energy prices, which hinder the continued global economic recovery from the damage caused by the worst health crisis in a century.

The International Energy Agency warned that more global supplies will be available in the coming months, which is expected to cause a global supply glut.

The US Energy Information Administration reported today that the US crude inventories fell 2.1 million barrels during the past week, while analysts forecast a rise by 1 million barrels.

While the US output fell 100K barrels last week, with the total at 11.4 million barrels per day.

At 13:30 GMT, the US Department of Labor showed that the unemployment claims were at 268K during the week ending in November 12, the lowest reading since March 2020, worse than forecasts of 260K, but slightly lower than the previous reading of 269K.

The US dollar fell against a basket of currencies on Thursday, to head for the second straight daily loss due to profit-taking from a 16-month peak, as inflation fears eased after the broad drop in oil prices, ahead of the weekly unemployment claims reading in the US.

The dollar index fell 0.2% to 95.63 points, after opening at 95.79 points, and hit a high at 95.84 points.

The index fell 0.15% yesterday, the first loss in 3 days, due to profit-taking from a 16-month peak of 96.24 points.

In addition to profit-taking the greenback fell after oil prices hit 6-week low, which raised hopes that the ongoing drop in oil prices would curb the rising US inflation rate.

These concerns rose last week, after the US consumer price index rose by 6.2% y/y in October, which is the highest level since 1990, which raised the chances of the near tightening of the US monetary policy to reduce these inflationary pressures.

At 13:30 GMT, the US unemployment claims reading is expected down to 260K in the week ending November 12, from 267K the previous reading, the lowest reading since March 2020.