(13/04) Oil, gold and copper prices down

April 13, 2011

World oil prices slumped for a second straight day on Tuesday after the International Energy Agency warned that recent high prices have hurt global demand for energy.

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Selling pressure also got a boost after Goldman Sachs recommended investors cash in their bets on the overinflated commodities markets, arguing that oil prices have less upside potential at this point and could be forcing retail buyers to cut consumption.
London Metal Exchange three-month copper shed $225, or nearly 2.3 per cent, to close at $9,630 a tonne, its largest daily decline since March 9.

On Monday, the metal rallied to a five-week peak at $9,944.75, just 2.4 per cent away from its mid-February record at $10,190.

COMEX May copper fell 7.65 cents to settle at $4.3835 per lb, near the lower end of its $4.3610 to $4.4750 session range.

COMEX trading volumes grew to a hefty 65,800 lots by 2:01 pm EDT (1801 GMT), nearly two-thirds above the 30-day norm, according to Thomson Reuters preliminary data.

Higher inventories of copper in LME warehouses also pressured prices, fanning concerns about sluggish Chinese demand in the first part of the new year.

Stocks have risen since mid-December and last rose 1,000 to 446,700 tonnes, the highest level since July 1.

China's copper imports are unlikely to surge in April after a 29.2 per cent rise in March since importers are worried about high stocks in Shanghai.