Crude eases on higher US stockpiles

Crude oil future prices, on Comex division of New York Mercantile Exchange (Nymex) recorded their single largest drop in a trading session on Wednesday December 1, 2004.

IPE Brent crude futures for January delivery lost US$3.20 to US$42.31 a barrel by the end of trading in London. January Nymex WTI lost US$3.64 to US$45.49 a barrel. Petroleum products experienced sharp declines with January Nymex gasoline futures down by 8.34 cents, to US$1.2012 a gallon and January Nymex heating oil futures down by 8.90 cents to US$1.3293 a gallon.

The Energy Information Administration, part of the US Department of Energy, report revealed larger than expected distillate stockpiles. As per the report, diesel and heating oil, rose by 2.3m barrels in the week to November 26; gasoline inventories gained 3m barrels; and crude stockpiles were 900,000 barrels.

Gold topped US$456 an ounce

The continued decline in US dollar against euro pushed gold to higher levels, this time the level not seen since 16-1/4 years on Comex division on New York Mercantile Exchange. The Gold topped US$456 an ounce. On the London Bullion Exchange, the gold moved within US$1 of its 16-year high of US$455 a troy ounce as the euro reached a further record high against the dollar. Gold ended London trade at US$453.40/US$454.15, compared with the late quote of US$450.50/US$451.25 in New York on Tuesday.

In the domestic bullion markets, the yellow metal continued to slide further on weak buying support. Gold standard Rs35 lower at Rs6,630 per 10 gm.

Silver quotes above US$8 an ounce

Silver is currently quoting at US$8.015 a troy ounce on the Comex division of New York Mercantile Exchange (Nymex). Silver on Tuesday December 1, 2004, went close to US$8 a troy ounce, a point it last moved past on its way to touching a 17-year high of US$8.43 in April 2004. Silver hit an intra-day high of US$7.95 a troy ounce before settling at US$7.92/US$7.95 at the close of London trading.

Dollar boost for base metals

Gold was not the only beneficiary from the fall in the US dollar, base metals such as copper, lead, zinc and nickel too moved higher. However, aluminium prices continued to fall further. The three-month copper price on the London Metal Exchange (LME) ended at US$3,114 a ton on Tuesday December 1, 2004. Lead, zinc and nickel recorded marginal gain in their prices. Aluminium prices, however, slipped by US$7 to close the day at US$1,832 a ton.

Spot rubber ends steady

Lack of purchasing activity from the covering groups and purchase agents, tied down the spot rubber prices to their previous close level. The physical rubber price of per kg RSS 4 was Rs50 (50.25); RSS 5 Rs48.75 (48.75); ungraded Rs46.50 (46.50); ISNR 20 Rs49.25 (49.25); latex 60% Rs37.50 (37.50). Meanwhile, the NMCE futures continued its downfall quoting the December delivery at Rs51.12 against Rs51.27 a kg with moderate volumes. The near month January delivery was quoted at Rs51.85 (52.36), February delivery at Rs52.60 (53.33) and March delivery at Rs53.65 (54.38) per kg for RSS 4. A strong yen and reports on improving rubber supply in Thailand continued to hammer the international markets. At TOCOM, the January futures for RSS 3 closed at 123.5 yen against 123.2 yen.

Soybean rust affects more states in US

The Asian rust disease seems fast spreading across US with Tennessee, ninth state, being tested positive. Soybean rust, the highly contagious disease, has rapidly swept across the US South and is taking aim at big Midwest farming states, according to officials. The airborne fungus, which can slash soybean crop production by up to 80%, has steadily spread since it was first discovered in Louisiana on November 10, 2004. The US Agriculture Department has confirmed soybean rust in farm fields in Alabama, Arkansas, Florida, Georgia, Mississippi, Missouri and South Carolina.

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