Crude oil prices remained steady in European session ahead of the IMF meeting later this week. Tensions between Turkey and Syria and tighter sanctions against Iran on its nuclear development continued to support prices. European bourses were, however, weighed down by the IMF's comments that "downward spiral of capital flight, breakup fears and economic decline".

In IMF's latest Global Financial Stability Report, the world lender signaled concerns over the situation in Eurozone and anticipated as much as US$ 4.5 trillion is needed through 2013 so as to achieve the fiscal target. It stated that "intensification of the crisis has manifested itself in capital outflows from the periphery to the core at a pace typically associated with currency crises or sudden stops". Meanwhile, the ESM and OMT "must be regarded by markets as real, not ‘virtual' and should be coupled with credible conditionality". According to the IMF, "restoring confidence among private investors is paramount for the stabilization of the Euro area".

Concerns over oil supply shortage reemerged as US President Obama approved a framework for tighter sanctions on Iran. Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei stated that "these sanctions are barbaric. This is a war against a nation... But the Iranian nation will defeat them". This, adding to the recent conflict between Turkey and Syria, boosted Brent crude oil more than WTI crude oil. Spread between WTI and Brent crude oil prices widened to as much as 22.5 on Monday.

Earlier in Asian session, Japan's machine tool orders contracted -3% y/y in September, worsening from the -2.7% drop a month ago. Australia's consumer confidence added +1% in October, compared with +1.6% in September. In the US, the wholesale inventories probably added +0.4% in August, easing from a +0.7% gain a month ago. The Fed's Beige Book business survey will also be released. Fed Presidents Kocherlakota, Tarullo and Fisher will speak today.

Oil and Gold Reports contributed by Oil N' Gold