* Copper retreats from Friday's peak of $5,854.50/T
* Lead prices reach highest since May 3
* LME/ShFE arb - http://tmsnrt.rs/2oQ5nm2 (Updates prices, adds comment)
LONDON, June 26 (Reuters) - Copper eased on Monday as oil prices fell and U.S. durable goods data missed forecasts, though expectations for upbeat Chinese demand and concern over mine supply kept the metal underpinned near Friday's 11-week high.
Oil prices retreated towards last week's seven-month lows on Monday, hurt by a rise in U.S. supply, abundant global inventories and a jump in demand for short sale contracts that signal investors see potential for a price fall.
"Oil prices have been weaker (today), and that has been weighing on the base metals," Commerzbank analyst Daniel Briesemann said. "You could also argue that the durable goods orders are playing their part in this."
Among other base metals, lead reached its highest in nearly eight weeks and zinc moved back towards Friday's 11-week peak in early trade as on-warrant London Metal Exchange stocks -- metal not earmarked for delivery and therefore available to the market -- hit their lowest in nearly a decade. Both pulled back later.
* LME COPPER: London Metal Exchange copper was at $5,783 a tonne at 1502 GMT, down 0.3 percent after a 1 percent gain in the previous session. LME copper touched its highest since April 7 on Friday at $5,854.50.
* DURABLE GOODS: New orders for key U.S.-made capital goods fell unexpectedly in May and shipments also declined, suggesting a loss of momentum in the manufacturing sector halfway through the second quarter.
* COPPER STOCKS: Copper inventories in London Metal Exchange warehouses <MCU-STOCKS> fell another 4,025 tonnes on Friday, exchange data showed, and are now down nearly 100,000 tonnes, or 28 percent, from their early May peak.
* POSITIONING: Hedge funds and money managers cut their net long position in copper futures and options by 13,552 contracts to 49,285 in the week to June 20, U.S. Commodity Futures Trading Commission data showed on Friday.
* ZINC STOCKS: Zinc inventories in LME warehouses <MZN-STOCKS> fell to their lowest since early 2009 at 301,175 tonnes, exchange data showed, while on-warrant stocks hit their lowest since late 2007 at 81,150 tonnes.
* ZINC AND LEAD: LME zinc was little changed at $2,704 a tonne, off Friday's peak of $2,747, its highest since April 7. Lead was up 0.5 percent at $2,240, having earlier hit its highest since May 3 at $2,258.50.
* ZINC SPREAD: The discount of the cash contract in LME zinc over the three-month contract has narrowed to zero, exchange data showed, suggesting a tighter LME market.
* OTHER METALS: LME aluminum was down 0.4 percent at $1,858 a tonne, while tin was 0.1 percent higher at $19,240 and nickel was down 0.7 percent at $9,020.
(Additional reporting by Melanie Burton in Melbourne; Editing by Edmund Blair and David Goodman)