Barbara
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Oil & Gold Decline in Commodities in London - 2008/09/02 20:07
Hi guys, the storms in America have had different effects in markets these last 2 days.
Crude oil and gold led a drop in commodities in London as Hurricane Gustav spared the U.S. Gulf states the destruction caused by Katrina and Rita in 2005.
The S&P GSCI index of 24 commodity futures has dropped as much as 7 percent in two days, to the lowest since April 2. Oil is trading at a five-month low, 27 percent below the record $147.27 a barrel reached July 11.
Lower commodity prices may help ease inflation, which in the euro zone dropped to 3.8 percent last month from 4 percent. The World Bank expects global growth to slow to 2.7 percent this year from 3.7 percent in 2007.
Slower consumption in the U.S., the world's largest user of oil, would hurt manufacturing countries that are emerging economies. The U.S. is second to China in terms of industrial-metals consumption.
Crude oil for October delivery fell as low as $105.46 a barrel on the New York Mercantile Exchange, 8.7 percent less than on Aug. 29. Today's trading is combined with yesterday's for settlement purposes because of the Labor Day holiday in the U.S.
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