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ANZ, EGP, HIL, HVN, MQG, NCM,

AAP

2012-12-03

A summary of trading in key commodities markets overseas:

ENERGY

Oil prices turned higher in late trade on Friday to end with modest gains despite growing worries over deficit negotiations in Washington.

In New York, West Texas Intermediate crude for January delivery added 84 cents to $US88.91 a barrel.

On the London market, the Brent North Sea contract for January gained 47 cents to $US111.23 a barrel.

Traders said there was little news to explain the higher price; the rising euro, which topped $US1.30, was one likely contributor to buying.

But the US fiscal cliff talks, which could see the world's largest economy forced into recession next year if Democrats and Republicans cannot agree on a deficit-cutting plan, continued to overshadow trade.

Politicians on both sides signalled on Friday that things were not going very well in the talks, one month before the deadline.

METALS

Political wrangling over the fiscal cliff in the US pushed prices lower for most metals on Friday.

Many investors are staying out of the market until they have a better idea about whether the Obama administration and Congress can agree on a new budget by the end of the year.

If the US economy is pushed back into a recession, demand for commodities would fall.

Gold for February delivery fell $16.80 to finish at $1,712.70 per ounce, and March silver dropped $1.152, or 3.3 per cent, to $33.279 per ounce.

January platinum fell $14.90 to $1,604.60 per ounce.

March copper rose 4.45 cents to $3.65 per pound and March palladium rose 75 cents to $688.20 per ounce.