Trade with Commodities: QUARTS & OUNCES

Thursday, June 11, 2009

QUARTS & OUNCES

Oil rises to $73 on IEA's revised estimates LONDON: Oil firmed to over $73 a barrel on Thursday after the International Energy Agency (IEA) raised its estimate for 2009 oil demand, adding to signs the fall in consumption may have bottomed out. World oil demand will contract by less than previously expected this year, IEA said as it raised its 2009 forecast for the first time since August 2008. "Markets are currently in a phase of identifying green or bamboo shoots, and the IEA report "will likely be taken as an additional green shoot," said Olivier Jakob, oil analyst at Petromatrix. The US crude rose 71 cents to $72.04 a barrel by 1105 GMT, a near eight-month high. Brent crude gained 50 cents to $71.30. Falling inventories in top oil consumer the US also supported prices. The US crude stocks fell by a sharp 4.4 million barrels last week, against expectations for a modest draw of 400,000 barrels, while products inventories also dropped, the Energy Information Administration (EIA) reported on Wednesday.
Gold snaps two-day gains
MUMBAI: Snapping two-day gains, gold prices declined on the bullion market here on Thursday due to unloading of stock from stockists on the back of fall in global markets. Lack of local buying interest also affected the gold prices to some extent. Silver prices also slipped on poor demand from industrial users. Surging oil prices above $73 a barrel, raised the metal's appeal as an inflation hedge but a stronger dollar reduced the metal's investment appeal, a dealer said. In the local market, standard gold (99.5 purity) fell by Rs 60 per 10 grams to Rs 14,645 from Rs 14,705 previously. Silver ready (.999 fineness) dropped by Rs 200 per kg to Rs 23,275 from Rs 23,475 previously.
Copper at 8-month high
LONDON: Copper rose to an eight-month high on Thursday as data showing a fresh high in copper imports to China boosted sentiment, while aluminium was buoyed by another drawdown in stocks. Copper for three-month delivery on the London Metal Exchange (LME) traded at $5,285 a tonne from a close of $5,180 on Wednesday. Prices of the metal used extensively in power and construction earlier hit $5,300, the highest since October 14. A recent spate of improving economic data has helped lift copper prices by more than 10% so far in June. "We're in recovery mode," said Calyon analyst Robin Bhar. "The Chinese May data was very positive."
Palm down as crude eases
JAKARTA: Malaysian palm oil futures closed lower on Thursday after crude oil, which sparked a midday rebound, retreated from its high in Asian hours, traders said. Crude had supported palm prices, which otherwise should have come under pressure after industry data showed Malaysian palm oil stocks rose again in May after falling to 22-month low in April.