* Shanghai copper gets oil lift
* Stronger China factory activity supports (Updates prices)
By James Regan
SYDNEY, Dec 1 (Reuters) - Shanghai copper futures climbed nearly 2 percent on Thursday, recovering some of the previous session’s steep losses, as a rally in oil prices filtered through to other commodities.
OPEC agreed on Wednesday to its first oil output cuts since 2008, driving up crude prices by around 10 percent.
“Industrial metals were stronger, spurred on the by the gains in the energy sector,” ANZ bank said in a note, although it cautioned the oil-inspired rally could soon top out.
Higher oil prices could reactivate more dormant U.S. shale oil output, the bank said, adding that it doesn’t expect oil to fetch much above $60 per barrel in early 2017.
The most-traded copper contract on the Shanghai Futures Exchange had risen 1.8 percent to 47,060 yuan ($6,827.12) a tonne by 0700 GMT, after falling 3.6 percent on Wednesday.
Shanghai zinc and lead slipped 0.52 and 0.61 percent, respectively. ShFE nickel saw a gain of 0.3 percent.
Shanghai Futures Exchange said on Wednesday it will limit intraday position sizes in January and February zinc and lead futures for non-members, again moving to curb speculators that have piled into metals.
Three-month copper on the London Metal Exchange eased 0.05 percent to $5,820 a tonne after gaining 2 percent overnight.
Copper found support as oil’s gains added to U.S. inflation expectations - already high on prospects that president-elect Donald Trump would enact reflationary policies funded by large fiscal stimulus.
News that China’s factory activity expanded modestly in November while inflationary pressures showed signs of building added to the bullish sentiment.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin ($1 = 6.8931 Chinese yuan) (Reporting by James Regan; Editing by Richard Pullin and Subhranshu Sahu)