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Commodities Fall on Greece, Gold Erases Year’s Gains

May 14, 2012 at 21:27 by Vladimir Vyun

Commodities continue to be beaten by the crisis in Europe. Oil extended its decline and gold erased this year’s gains as the dollar strengthened on the European problems, pushing commodity prices down. Greece is still unable to form a coalition government and talks about the country leaving the eurozone are becoming more serious as European politicians consider such outcome as a reality perhaps for the first time.

Crude oil has its own bearish story as Ali al-Naimi, the Saudi Arabian Minister of Petroleum and Mineral Resources, continues to call for lower prices. And it looks like he is serious about it as the Organization of the Petroleum Exporting Countries reported that Saudi Arabia ramped up production to the highest level at almost three decades.

June futures for delivery of crude oil dropped as much as $1.35 to $94.78 per barrel on NYMEX today, the lowest price since December 19. Brent grade of crude was down from $111.94 to $111.04 per barrel as of 21:19 GMT on ICE today, following the decline to $110.04 — the lowest settlement since January 25. Gold price slid from $1,563.10 to $1,561.90 on COMEX today — the lowest level since December 30.

If you have any questions and comments on the commodities today, use the form below to reply.

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