MercoPress. South Atlantic News Agency

Oil, metal prices tumble

Oil fell under US$ 70 a barrel, gold dropped almost four percent and copper plunged yesterday as investors feared a rally that has taken many commodities to or near record highs may slow economic growth.

US crude dropped more than three percent after reports signalled last week that energy costs were hitting global fuel demand and consumer confidence. Greece's finance minister said yesterday that oil is a downside risk to "strong" global growth.

"Everybody has got a bit jumpy," said Mark Mathias, managing director of Dawnay Day Quantum hedge fund. "We've seen very sharp rises over the last couple of months on equities and commodities, so it's no surprise it's being marked down a bit."

US light crude dropped US$2.34 to US$69.70 a barrel, extending losses of more than a dollar on Friday. London Brent crude fell US$2.14 to US$70.18.

Industrial and precious metals fell as bullish sentiment faltered. Copper, which hit a record high last week, dropped as low as US$ 7700/7900 a ton, down 8.8 percent from Friday's close, before paring losses to US$8265.

Gold slid as low as US$687.60 an ounce, down 3.7 percent from US$ 714.10/715.10 on Friday in New York. The metal reached a 26-year high last week.

"These things are in a speculative bubble and today the speculators have decided the risks are a bit bigger than the returns," said Tony Dolphin, director of economics and strategy at Henderson Global Investors Ltd in London (Bs Aires Herald)