Commodities: Weak consumer confidence erodes demand

Date: Monday 15 Mar 2010

Oil prices finished 1% lower on Friday as traders mulled a mixed batch of economic data.

Weak consumer confidence took the shine off better than expected retail sales figures. Retail sales rose 0.3% in February, according to the Commerce Department. Analysts forecast a decline of 0.2%.

Meanwhile the University of Michigan preliminary consumer sentiment index fell from 73.6 in February to 72.5 in March. The figure had been expected to rise but rising unemployment hit sentiment.

US light crude oil for April delivery settled 87 cents lower at $81.24 a barrel at the New York Mercantile Exchange as confidence about the economic outlook faltered. Profit taking also weighed after crude’s recent spike.

Gold for April delivery ran out of steam on Friday, settling $6.50 lower at $1,101.70 an ounce at the New York Mercantile Exchange.

The weaker than expected consumer confidence report rattled market confidence and sapped appetite for oil and gold.

Silver for April delivery fell 9 cents to $17.04 an ounce while copper for May delivery was flat at $3.38 a pound.

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