The commodity markets indicated that the oil prices across the world recorded downward trends with investors anticipating over potential plans for a hike in the production of crude oil. They also made use of the chances to realize recent profits as they held in wait for the US Federal Reserve’s current monetary policy meet and the publication of the follow-ups. In London, Brent North Sea crude meant for delivery scheduled in April slumped $US1.57 to a value of $US115.95 per barrel. The light crude main contract for New York, meant for delivery for March fell $US1.97 to a value of $US94.69 ($A91.91) a barrel, with the March contract expiring at the close. Analysts explain the fall in oil prices to be motivated by probability of rise in supply from Saudi Arabia in the months ahead.
The markets in Asia also indicated that the oil prices had registered a downward trend, with the dollar gaining in strength, with speculation in the market regarding an increase in the crude production for Saudi Arabia in the upcoming months. The speculation also elaborates that Saudi Arabia intends to increase production to fulfill the increasing demand for countries including China. As a consequence to rise in production, a fall in the pressure on prices is also expected.
A look at the markets for base metals in the London Metal Exchange or LME indicated that they have finished lower consequent to the group securing gains overnight, during the initial stages of the session. Copper positioned at 1.1% lower during the day at a value of $US7,960 per metric ton. Nickel repeated its trends of leading a fall move, in bearish environment for metals, by finishing 1.2% lower at a value of $US17,165/ton.
In precious metals, gold positioned at a low for a duration of seven months, at a value lower than $US1,600 an ounce. At the end of trading, ahead of settlement, the highest activity in trading contract for gold, scheduled for April delivery, traded low 1.6% or $US25.80, at a value of $US1,578.40 per troy ounce on the New York Mercantile Exchange’s Comex division.