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Commodities Tumble as Europe Battered by Problems

May 8, 2012 at 21:20 by Vladimir Vyun

Commodities declined today, threatening to erase this year’s gains, as the problems continue to haunt Europe. Greece is a particular concern, being the most indebted member of the European Union. The country failed to form the government after the election on the weekend, fueling fears that Greece may leave the eurozone. The Standard & Poor’s GSCI Spot Index dropped for the fifth consecutive day.

Crude oil had its own bear story on top of Europe’s woes as Saudi Arabia signaled that prices for the commodity are high. Saudi Arabian Oil Minister Ali al-Naimi said that the prices are “still a little bit high”. Such comments are likely mean that the world’s biggest oil exporter is going to boost its production.

June futures for delivery of crude oil slipped $0.93 (0.9 percent) to $97.01 per barrel on NYMEX. Brent fell from $113.33 to $110.53 per barrel before trading at $113.14 as of 21:05 GMT today on ICE. Gold dropped from $1,636.70 to $1,604.00 per ounce on COMEX today, reaching $1,596.00 intraday — the lowest settlement since January 4. Sugar tumbled from $0.2105 to $0.2033 per pound on ICE, while the daily minimum of $20.31 was the lowest since September 1, 2010.

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

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