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Fluctuations of Supply & Demand Hurt Crude Oil & Copper

October 23, 2013 at 20:03 by Vladimir Vyun

Crude oil slumped today as US inventories rose last week more than was expected. Stockpiles of crude were up 5.2 million barrels, while specialists’ projections promised just 2.7 million growth. Oil was also under pressure from the general negative market sentiment. December futures for delivery of WTI crude oil dropped $1.57 (1.6 percent) to $96.73 per barrel as of 19:52 GMT on NYMEX today. Contract for delivery of Brent crude tumbled as much as $2.45 (2.23 percent) to $107.52 per barrel on ICE.

The traders’ mood was poor because of news from China, the biggest consumer of copper in the world. Unsurprisingly, the industrial metal fell too. China’s benchmark money-market rate demonstrated the biggest jump since July, while the People’s Bank of China refrained from injection of funds into markets, leading to liquidity squeeze. Copper slid $0.0725 (2.17 percent) to $3.2630 per pound on COMEX today.

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