NEW! Investment Companies Centre

Commodities: Crude demand fuelled by supply concern

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Wednesday 02 Jul 2008

LONDON (ShareCast) - Crude futures hit a high of $143.33 Tuesday before settling a few dollars less as concern about ongoing tension in the Middle East and supply disruptions from Nigeria fuelled demand.

Crude for August delivery rose 97 to end at $140.97 a barrel on the New York Mercantile Exchange.

The weaker dollar also boosted oil, as did a report from the International Energy Agency, which cut its estimate on the amount of oil coming into the market over the next few years.

The IEA predicts serious supply concerns after 2011 while average demand growth is expected to reach 1.6% a year to 2013, to meet demand from rapidly expanding economies in Asia, the Middle East and Africa.

Among precious metals gold futures climbed $6.60 to $934.90 an ounce as its safe haven qualities came to the fore. The yellow metal tracked oil prices higher and the weaker dollar, regaining ground on recent losses.

Traders overlooked a better than expected report on US factory data, with attention turning to jobs data out Thursday and the European Central Bank’s decision on interest rates.

Silver for September added 78 cents to $18.29 while platinum rose $16.70 to settle at $2,088.70.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).