Crude oil futures on the Multi Commodity Exchange weakened further during the week ended on Friday on reports that oil prices overseas slipped below $60 per barrel on global appetite for crude oil over the next few months remains unclear.
Oil tumbled near $60 a barrel in the last two days after dropping from 8-month high of $73.38 on investor concern that a rally since March wasn’t justified by weak global crude demand.
MCX crude oil August 2009 future was lower by Rs 220 to trade at Rs 2,994 per barrel on Friday. WTI crude oil spot prices were quoted lower at $59.35 per barrel. The Paris-based IEA looked further ahead, predicting in its monthly survey that economic recovery in developing countries will help counter a two-year drop in oil usage sparked by the global recession. The IEA left its forecast for 2009 oil demand unchanged, and still expects it to drop 2.9%.
MCX gold August 2009 contracts remained quiet at Rs 14,456 per 10 gram on Friday. Gold spot in London declined 2% at $909.45 last week as the dollar strengthened, weighing on commodities.
MCX silver September 2009 contracts were down Rs 1,162 to trade at Rs 21,408 per kg on Friday on some local selling pressure following demand fears.
Silver was traded lower at $12.61 an ounce. “We expect more silver than gold selling in the current environment. Silver support is at $12.60 and $12.56, with resistence at $12.83 and $13,” said an analyst with StanChart. MCX copper August 2009 contracts were traded lower at Rs 242.45 per kg on Friday, down by 1.3% over the previous week, on weak dollar amid slack global demand.