Commodities: Crude slips on demand outlook

Date: Monday 11 Jun 2012

Crude oil prices slipped to an eight-month low on Friday on worries about future demand as the Eurozone crisis deepens.

Crude for July delivery fell 72 cents lower at $84.10 a barrel on the New York Mercantile Exchange. On the week crude finished up 87 cents or 1%, snapping a five-week decline. Hopes of decisive action to resolve the Eurozone debt crisis and increased expectations that Fed will unleash more quantitative easing underpinned the weekly gain.

Friday's lack of interest in crude however stemmed from disappointment over any indications of immediate action by Federal Reserve Chairman Ben Bernanke.

Crude was also pressure by the continued glut in crude oil inventories after Energy Information Administration data showed US stockpiles at their highest levels since 1990 while gasoline inventories jumped 3.3m barrels in the last week.

On the ICE Futures Europe exchange Brent crude fell 46 cents to $99.47.

Among precious metals gold mirrored the euro's recovery on Friday but still ended the week down nearly 2%.

Gold for August delivery climbed $3.40 to settle at $1,591.40 an ounce on the Comex division of the New York Mercantile Exchange.

The yellow metal's weekly loss comes amid disappointment over a lack of measures from the Fed and the European Central Bank.



CJ

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