Market and product
Metals-Energy Update: Crude oil tumbles, copper weakens
Precious Metals
US gold futures showed steady to weakening trends as a dollar rally coupled with losses in crude oil and commodities prompted investors to sell ahead of the weekend.
Bullion also came under liquidation pressure as Wall Street resumed its slide following weaker Chinese trade data, and the euro tumbled more than 1 percent as fears overGreece's debt returned to the forefront.
Gold may gain inNew Yorkas concern aboutEurope’s sovereign-debt crisis and slowing economic growth spur demand for the metal as an alternative investment.
On Friday, Gold for August delivery fell 60 cents to $1,542.10 an ounce by 7:59 a.m. on the Comex inNew York.
Silver for July delivery fell 0.3 percent to $37.32 an ounce inNew York. Palladium for September delivery declined 0.4 percent to $814.80 an ounce. Platinum for July delivery was down 0.5 percent at $1,836 an ounce after climbing to a five-week high of $1,849.40.
In Indian market, MCX August Gold Futures opened the week at Rs.22670 and fell by 0.55% to 22545 after hitting a low of 22454, high of 22786 while October contract declined by 0.63% to 22819 per 10 Grms. MCX Silver July opened this week at Rs.54888 and ended lower by 0.80% at Rs 54447 on profit booking at higher price levels. The contract hit a low of 54420 and high of 56280 this week. September contract fell from Rs 56355 to Rs 55204 after hitting a high of 57031.
Crude Oil
Crude oil tumbled the week due to al-Hayat newspaper reported Saudi Arabia will raise oil production to 10 million barrels a day next month, and on concern the global economic recovery is slowing.
Saudi Arabiawill increase oil production, though it is too early to say by how much, according to a Saudi industry official with knowledge of the matter. The country is still assessing demand, the person said, declining to be identified because he isn’t authorized to speak for the government.
Crude oil for July delivery declined $2.64 to settle at $99.29 a barrel on the New York Mercantile Exchange. It was the biggest drop since May 11. Prices fell 0.9 percent this week and are 32 percent higher than a year ago.
Brent crude for July delivery decreased 79 cents, or 0.7 percent, to $118.78 a barrel on the London-based ICE Futures Europe exchange.
In India, at MCX, Crude oil June contract fell 1.57% from Rs 4503 to Rs 4432 after hitting a high of 4575 while July contract declined 1.36% per cent to Rs.4482 after hitting a low of 4486 while August contract fell from Rs 4595 to Rs 4535, after hitting a low of Rs 4491.
Natural Gas
Natural gas advanced in global markets, on forecasts for a wave of hot weather from the Midwest to theAtlanticCoastthis month that would boost demand from power plant.
Warmer-than-normal weather is likely in the South and parts of theMidwestfrom June 15 through June 19, according to Commodity Weather Group. The above-normal temperatures may increase the demand for natural gas to produce electricity for air conditioners.
The high temperature inNew Yorkon June 20 may be 85 degrees Fahrenheit (29 Celsius), 5 above normal, according to AccuWeather Inc. inState College,Pennsylvania. The high inDallasmay be 96, 3 degrees above normal.
Natural gas for July delivery rose 8.3 cents to settle at $4.757 per million British thermal units on the New York Mercantile Exchange. Prices jumped 1.1 percent this week and have gained 8 percent this year.
Cooling demand in theU.S.may be 15 percent above normal from June 16 through June 20, said David Salmon, a meteorologist with Weather Derivatives inBelton,Missouri, in a note to clients today.
In India at MCX, Natural gas June contract closed up by 0.89% to Rs.213.80 per mmBtu, after hitting a high of 223.50 per mmBtu, whereas the July contract increased to Rs.216.80 per mmBtu, marginally higher.
Base Metals
Copper fell on a decline in imports of the metal byChina. Copper has dropped for three consecutive months, losing 6 percent this year on the LME asChina’s attempts to rein in above-target inflation reduced credit, curbing production that typically fuels usage of raw materials.
Manufacturing advanced in May at the slowest pace in nine months, one report shows, while a second indicated the weakest growth in 10 months
Copper futures for July delivery dropped 5.15 cents, or 1.3 percent, to close at $4.056 a pound on the Comex inNew York. The price fell 1.9 percent this week.
InLondon, copper for three-month delivery fell $117, or 1.3 percent, to $8,938 a metric ton ($4.05 a pound).
Other metals like Nickel, aluminum, lead, tin and zinc also dropped inLondon.
In India at MCX, copper June contract fell from Rs.409.35 to Rs.401.60 per Kg lower by 1.89 %, after hitting a high of 413.40 per Kg whereas the August contract ended down by 2.03%% to Rs.407.10 per Kg after hitting a high of 418.70.
