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Copper & Oil Decline on Outlook for Weak Demand

September 28, 2010 at 2:37 by Vladimir Vyun

Copper fell from highest level in five months today as the slower global economic growth suggests that demand for the metal may decrease. Reports about new homes sales and unemployment claims in the US last week signaled about weakness of the US economy. Analysts say that it’s not surprising for the price to encounter resistance at previous high levels, but that resistance may be broken in case of some really good news, which would push the prices upward. December futures for copper delivery subtracted $0.021 (0.6 percent) to $3.597 per pound by 13:24 on COMEX.

Crude oil dropped today after the dollar strengthened against the euro and forecasts suggest that gasoline inventories in the US, the biggest oil consumer in the world, would grow, causing demand for crude to decline. The euro fell versus the dollar on concerns about health of the banking systems in such countries as Ireland and Portugal. Experts estimated that US gasoline stockpiles advanced 750,000 barrels last week. November delivery for crude oil (Brent) dropped $0.3 (0.4 percent) to $78.57 per barrel on ICE.

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