A summary of trading in key commodities markets overseas:
ENERGY
World oil prices slumped as the euro tumbled close to a one-year US dollar low on the back of the eurozone debt crisis, and after the OPEC cartel opted to keep oil output steady.
In late afternoon trading on Wednesday, the price of Brent North Sea crude for delivery in January dived $US2.77 to $US106.76 a barrel.
New York’s main contract, light sweet crude for January, shed a hefty $US3.23 to $US96.91 per barrel.
The European single currency dived under $US1.30 on Wednesday, hitting the lowest point since the start of the year on mounting concern about the eurozone debt crisis in the wake of last week’s summit.
METALS
Gold dropped about 3.5 per cent on Wednesday as a technical sell-off, year-end fund liquidation and plunging commodities fuelled bullion’s second-worst rout since the 2008 economic crisis.
The magnitude of gold’s decline dwarfed equities’ losses. Bullion was already pressured by the previous session’s news the US Federal Reserve did not offer new economic stimulus and as European debt fears lingered.
Rampant market talk that possible liquidation by a big hedge fund to meet redemption demand ahead of the year end also weighed heavily on bullion market sentiment.
Spot gold fell 3.4 per cent to $US1,574.95 an ounce by 1908 GMT (0608 AEDT), having earlier hit $US1,564.29, its lowest since late September.
The metal notched its worst three-day slide since late September and its second-largest sell-off since October of 2008.
Copper fell near a three-week low on Wednesday as Europe’s debt crisis remained unresolved, denting demand prospects, and after the US Federal
ew to prop up growth.
Benchmark copper fell more than five per cent to $US7,176
a tonne, its weakest since November 25. It later closed at $US7,210
versus a close at $US7,600 a tonne on Tuesday.
