Oil prices dropped to their lowest levels since May as OPEC+ prepares for a weekend meeting where Saudi Arabia is expected to push for increased production in the coming months. London copper closed virtually unchanged. Gold reached a record high as weaker-than-expected U.S. employment data reinforced market expectations for Federal Reserve rate cuts later this month.

**Crude Oil: WTI Drops to Lowest Since May, Saudi Arabia Reportedly Seeks Accelerated OPEC+ Production Increase**

Oil prices fell to their lowest since May ahead of an OPEC+ meeting this weekend, where Saudi Arabia is expected to advocate for further production increases in the coming months.

WTI crude declined 2.5%, closing below $62 per barrel, marking a 3.3% weekly decline. OPEC+ will hold an online meeting on September 7 to determine next steps.

October-delivery WTI crude futures fell 2.5% to close at $61.87 per barrel.

November-delivery Brent crude futures dropped 2.2% to close at $65.50 per barrel.

According to sources familiar with the matter, Saudi Arabia seeks further production increases to offset declining oil prices through expanded output. No decision has been made yet, and it remains uncertain whether the production increase plan will be finalized this Sunday or in subsequent months.

"If OPEC+ countries agree to increase production again, we believe this would create significant downward pressure on oil prices," analysts Barbara Lambrecht and Carsten Fritsch from Commerzbank wrote in a report. "After all, the risk of oversupply is already substantial."

Geopolitical tensions also took center stage this week, with the United States attempting to pressure Russian oil buyers to force Moscow into agreeing to a ceasefire with Ukraine.

"Crude market sentiment remains poor," said Daniel Ghali, commodities strategist at TD Securities. "With the upcoming OPEC meeting, oil price movements remain asymmetrically skewed to the downside, and with anticipated supply increases from Guyana and Brazil, we remain tactically bearish on crude."

**Base Metals: London Copper Nearly Unchanged**

London copper closed virtually unchanged as weaker-than-expected U.S. employment data strengthened market expectations for the Federal Reserve to resume rate cuts at this month's meeting, causing the dollar index to decline.

At close, LME copper futures remained essentially flat at $9,897.5 per ton;

LME aluminum gained 0.4% to $2,600.5 per ton;

LME nickel was essentially unchanged at $15,235 per ton;

LME zinc rose 0.6% to $2,861 per ton;

LME tin fell 0.7% to $34,314 per ton;

LME lead remained essentially flat at $1,985 per ton.

**Precious Metals: Gold Breaks Through $3,600 to Set Record High as Weak U.S. Employment Data Strengthens Rate Cut Bets**

Gold reached a record high as weaker-than-expected U.S. employment data reinforced market expectations for Federal Reserve rate cuts later this month.

Gold prices rose as much as 1.5%, breaking through $3,600 per ounce to hit a historic high, extending this week's rally driven by intensifying rate cut expectations. Friday's key U.S. nonfarm payrolls report showed slowing hiring, with unemployment reaching its highest level since 2021.

Rate cuts typically enhance the appeal of non-yielding gold, while strong safe-haven demand provides additional support amid investor concerns about uncertain Federal Reserve prospects.

As of 5 p.m. New York time, spot gold rose 1.2% to $3,586.69 per ounce;

Spot silver gained 0.8% to $41.0042 per ounce.