Market Commentary
Oil Rises as U.S. Inventories Unexpectedly Decrease.
Oil rose in New York on an unexpected drop in U.S. inventories as imports declined for the fourth time in five weeks and petroleum consumption increased. Prices gained as much as 1.2 percent after the Energy Information Administration, the Energy Department’s statistical arm, said stockpiles fell 951,000 barrels last week. They were expected to climb 2.2 million barrels, according to the median of 11 analyst estimates in a Bloomberg survey. Consumption rebounded from the lowest level since March. “The drawdown in crude oil caught the market by surprise,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. “Supplies are coming tighter than expected.” West Texas Intermediate crude for February delivery climbed 96 cents, or 1 percent, to $94.24 a barrel at 12:01 p.m. on the New York Mercantile Exchange. Prices have climbed 2.6 percent since the beginning of the year. Volume was 16 percent above the 100-day average. Brent for February settlement, which expires today, gained 24 cents to $110.54 a barrel on the London-based ICE Futures Europe exchange. The more-active March contract increased 40 cents, or 0.4 percent, to $110.03. Volume was 9.6 percent below the 100-day average.
Gold Drops From One-Week High on Demand Concern; Platinum Slides.
Gold futures retreated from a one- week high in New York amid concern that demand is easing while economic growth slows. Platinum slipped from a three-month high. Buyers of gold are holding back in anticipation of lower prices, according to Afshin Nabavi, a senior vice president at bullion refiner MKS (Switzerland) SA in Geneva. The World Bank cut its global growth forecast for this year and predicted a second year of contraction in the euro region. “Any talk about slowing physical demand will put pressure on prices,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “Overall, there is some nervousness because of slowdown worries.” Gold futures for February delivery fell 0.4 percent to $1,676.70 an ounce at 10:36 a.m. on the Comex in New York. Prices reached $1,684.90 yesterday, the highest since Jan. 3. The metal rallied 7 percent last year, the 12th straight annual gain. Silver futures for March delivery declined 0.6 percent to $31.33 an ounce on the Comex. On the New York Mercantile Exchange, platinum futures for April delivery retreated 0.3 percent at $1,685 an ounce, heading for the biggest fall for a most-active contract since Jan. 4. Prices in New York reached a three-month high of $1,706.80 yesterday and exceeded the price of gold for the first time since March after Anglo American Platinum Ltd., the world’s biggest producer, said it will cut jobs and output.
Copper Falls to 2-Week Low After Rio’s Beats Forecasts.
Copper fell for a third day in New York on concern the euro-region debt crisis is sapping the economy in Germany, the world’s third-biggest user of the metal. Growth in gross domestic product slowed to 0.7 percent last year from 3 percent in 2011, Germany’s statistics office said today. Prices also slid after Rio Tinto Group’s production of mined copper topped analyst estimates, indicating ample supply. “Obviously it’s slightly bad news for Europe, as Germany is what’s dragging the European economy at the moment,” Christin Tuxen, an analyst at Danske Bank A/S in Copenhagen, said by phone today, referring to the German GDP figures. Copper for delivery in March dropped 0.4 percent to $3.621 a pound on the Comex in New York. Prices reached $3.614, the lowest level since Dec. 31. Copper for delivery in three months fell 0.5 percent to $7,964 a metric ton on
