Commodity markets diverged this week as metals benefited from better-than-expected US jobs data while oil futures were hit by easing supply strains.
Crude futures slid on easing concerns over supply disruptions in Iraq and Libya, but losses were capped by evidence of healthy demand in the world’s largest oil consumer, the United States, traders said.
Singapore’s United Overseas Bank said in a client note that “supply fears begin to ease after Libya declared an end to an oil crisis that has slashed exports”.
Concerns over a possible supply disruption due to Iraq’s security crisis have also eased. Crude price losses have been capped, however, by a bigger-than-expected drop in US inventories.
The US Energy Information Administration on Wednesday said American commercial crude inventories fell 3.2 million barrels last week, almost twice the amount predicted by analysts.
Gold hit three-month highs before the haven investment lost some of its gains because of the positive US jobs data.
