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Commodities Under Pressure from China & Fed Speculations

May 27, 2013 at 19:09 by Vladimir Vyun

Crude oil declined today on signs that China will tolerate slower growth. Copper fell in Shanghai too, but advanced in New York. Chinese President Xi Jinping said that the country will not sacrifice environment in favor of short-term growth. China is the biggest consumer of copper in the world and the second-biggest oil consumer.

Commodities also remained under pressure from speculations that US Federal Reserve will trim its quantitative easing program. Economists predict that the Conference Board consumer confidence index for the United States will show an increase from 68.1 to 70.7 in May. The data may add incentive for the Fed to reduce stimulus.

Futures for delivery of WTI crude oil in July declined $0.5 (0.53 percent) to $93.65 per barrel as of 19:01 GMT on NYMEX today, while Brent crude was little changed at $102.62 per barrel on ICE. Contract for copper delivery in September dropped as much as 1.3 percent to 52,230 yuan ($8,523) per metric ton on SHFE, while July copper was up 0.18 percent to $3.3015 per pound on COMEX.

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