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Copper prices rose, extending Friday's gains, as the red metal found support from steadier oil and gold markets, declining stocks and concerns over possible supply disruptions ahead.

At 2.32 pm, LME copper for 3-month delivery was up at 7,635.00 usd against 7,545.00 usd at the close Friday. Other metals were also higher.

Aluminium rose to 2,596.50 usd against 2,584.00 usd, lead was up at 1,395.00 usd against 1,380.00 usd, zinc rose to 3,400.00 usd from 3,330.00 usd, tin went up to 8,925.00 usd from 8,850.00 usd and nickel was up at 29,600.00 usd against 29,350.00 usd.

'Copper has opened higher this morning, as has the rest of the group, brushing off news out over the weekend that Highland Valley has reached a tentative labour agreement with its unions,' said Man Financial analyst Ed Meir.

The Highland Valley copper mine in Canada is owned by Teck Cominco Ltd. Concerns about possible strike action at the mine helped copper post gains on Friday.

It has continued higher today, underpinned by news of further declines in stockpile levels. The LME said today that copper stocks in its warehouses fell 700 tonnes to 116,875 - equivalent to less than 3 days of global consumption.

Furthermore, steadier oil and gold prices are lending support. Oil prices have begun steadying from a month-long slump, as traders weigh swelling energy stocks against the threat of output cuts by the OPEC cartel.

The firmer tone in oil is supporting the metals across the board, said Meir.

Specifically on copper, he said the metal continues to draw support from news that two unions at Codelco's Andina copper mine are to negotiate separate contracts with management, increasing the odds of drawn out negotiations.

'We see copper as having trouble passing the 7,770 usd (level) in the short term (the next two days), but the odds of a successful pass
above this level are increasing as we enter the fourth quarter.

-- a time when participants could get increasingly nervous about possible labour trouble at Codelco,' said Meir.