Crude oil dips as IEA forecasts demand cut; gold futures below 13,000-mark

Written by Commodities Bureau | Mumbai | Updated: Jan 20 2009, 04:41am hrs
Gold futures prices ended below the Rs 13,000-mark on the national exchange platform on lack of sustained buying support, while crude oil futures fell further on the week ended on Friday on reports that International Energy Agency forecast global consumption will shrink to 85.3 million barrels a day. Copper futures remained steady with limited support.

MCX crude oil February 2009 contracts ended lower at Rs 2,118 per barrel on Friday over the previous week's close of Rs 2,221 per barrel, down by 4.6% over the previous week.

Crude oil for February delivery traded up 9 cent at $35.14 a barrel on the New York Mercantile Exchange on Friday.

The Organization of Petroleum Exporting Countries (OPEC), last week, shaved its global demand estimate for 2009 by 20,000 barrels to 85.66 million barrels a day. That brings this year's reduction to 180,000 barrels a day, or 0.2%.

Crude oil may fall further next week, as traders try to profit from the price differentials between the prompt New York crude future and later months and store more supplies, energy expert said.

MCX Gold February 2009 contracts closed lower at Rs 12,926 per 10 gram on Friday over the previous week's Rs 13,328 per 10 gram, down by 3%. The safe haven appeal of gold was reinforced by mounting credit fears on news of further trouble at Bank of America and Citigroup. Investment demand for physical gold remains strong as turmoil in the financial markets and fears over the outlook for the global economy boost bullion's appeal. MCX February contract is expected to gain from current levels and trade in the ranges of Rs 12,960-12,500 levels, an analyst said.

MCX Silver March 2009 contracts were traded lower at Rs 17,761 per kg on Friday from Rs 18,404 over the previous week, down by 3.4%. March Silver on MCX is expected to correct and trade in the ranges of Rs 17,750-17,100 levels.

MCX Copper February 2009 contracts were lower by 1.25% to settle at Rs 165.20 per kg on Friday from Rs 167.30 over the previous week on concerns over suspension of Chinese copper purchases and rising inventory levels, analyst said.