08.09.2008 11:20

COMMODITIES: weekly review

Crude oil fell to a five-month low as the dollar climbed and U.S. unemployment rose more than expected, signaling a slowdown in demand. Oil declined 8 percent this week, the most since July, as the dollar rose to the highest this year against the euro. Payrolls fell in the U.S., the world's biggest energy-consuming country, the Labor Department said today. U.S. fuel demand during the past four weeks was down 3.5% from a year ago, the Energy Department said.

The Organization of Petroleum Exporting Countries, the supplier of 40% of the world's oil, will meet to discuss production and prices on Sept. 9 in Vienna. Venezuela and Iran have made calls to trim supply because prices have dropped 28% from the record $147.27 reached July 11. Saudi Arabia, the world's largest oil producer and OPEC's most influential member, hasn't said what its position on production will be at the meeting. The desert kingdom decided to unilaterally raise output by 500,000 barrels a day during June and July to curb the rise in oil prices.

Crude oil for October delivery fell to settle at $106.23 a barrel, the lowest close since April 4. Oil has dropped six straight days, the longest stretch since April 30, 2007, through May 7, 2007. Prices are 41% higher than a year ago. Brent crude oil for October settlement fell to $104.09 a barrel, the lowest settlement since April 3. Brent has dropped seven straight days for the first time since December 2006.

Gold fell as the dollar strengthened, eroding the appeal of precious metals as alternative assets. Gold has declined 22% from a March 17 record of $1,033.90 an ounce. Gold futures for December delivery fell to $802.80 an ounce. The metal slipped 3.9% last week.

Copper tumbled, capping the biggest weekly drop since January 2007, as climbing stockpiles and slowing global growth signaled demand for the metal may decline. Copper has dropped 27% since reaching a record in May. Copper futures for December delivery sank to $6,900 a metric ton. Copper dropped 8.5% for the week. The price has gained 3.4% this year.