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Commodities: Oil drips to a six-week low

Date: Thursday 02 Feb 2012

Commodities: Oil drips to a six-week low

Oil plunged to a six-week low on Thursday, hit by a rise in US supplies and a falling demand for fuel.

Oil supplies increased to a three-month high, according the Energy Department, while fuel usage fell 8.3% to 17.7m barrels per day, its lowest level since in around 14 years.

Prices were also hit as concerns over the sale of oil between Iran and Western countries eased.

The March futures contract for crude oil delivery lost $1.25, equivalent to 1.3%, to settle at $96.36 a barrel on the New York Mercantile Exchange.

Meanwhile heating oil gained 0.24% to end the day at $3.05 per gallon, natural gas rose to 7.22% to $2.55 per million British thermal units, while unleaded gas lost 0.81% to finish the day at $2.87 per gallon, all on the March contracts.

In metals gold gained 0.56%, or $9.80 to $1,759 per troy ounce on the April contract, its highest level since mid-November. The commodity, often tautologically referred to as a "safe haven" investment gained in popularity on the back of growing concerns over the Greek debt situation. The commodity has risen over 12% this year.

Platinum was also a strong riser, gaining 0.41% to $1,629 per troy ounce, alongside silver which rose 1.09% to $34.18 per troy ounce.

Copper, however, dropped 1.59% to end the day at $3.78 per pound, having made strong gains the previous day.

NR

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