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Commodities set to end May down in worst showing for years

Date: Thu, 31 May 2012 | Author: Paul Sanderson

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The price of commodities has suffered in May with the eurozone crisis and less global demand forcing the value down.

US crude oil is set to register its biggest monthly fall in percentage terms since 2008, while Brent crude is likely to see its largest price drop in two years.

Copper is also on its longest downward movement in over a year.

With the US recovery fragile, China growing more slowly than in previous years and the eurozone crisis afflicting not just Greece but potentially sucking in Spain too, there remains huge downward pressure on commodities.

Brent crude was slightly up this morning to $103.48 per barrel, but so far is down 13 per cent in May. US WTI oil gained 11 cents to $87.93 yesterday but will have fallen 16 per cent in the month – its worst performance since December 2008.

Three-month copper increased to $7,494 on the LME yesterday, after hitting a 2012 low of $7,422 earlier in the session. The metal will likely be down 11 per cent in May, which is its third monthly fall in a row.

The S&P GSCI index of 24 primary commodities fell 1.4 per cent last week and is down 9.4 per cent in May so far and is heading for its biggest monthly loss since September 2011. 

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