Commodities: Oil retreats as Turkish troops withdraw
A military incursion into northern Iraq by Turkish troops sent crude oil prices higher, with the January futures contract hitting an intra-day high of $92.88, but the gains were surrendered when news emerged that the troops were withdrawing. Crude for January delivery finished the trading session in New York down 14 cents to $90.49.
The January contract expired at the end of the session and will be supplanted as the bellwether contract by the February crude futures contract, which ended the day at $90.08, down by just less than a dollar.
Some support for the oil price was provided by a survey which showed industry professionals expect US oil inventories to diminish for the fifth straight week this week.
Meanwhile, in France, refinery workers for oil giant Total are on strike at five of the company’s six refineries in France. The industrial action commenced Monday afternoon in support of a claim for higher wages.
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Gold was on the comeback trail today, with the February futures contract breaking through the $800 barrier to close at $807.40 in New York, up $8.10, having risen as high as $811 at one point.
Strong physical demand from China more than compensated for the strength of the US dollar.
Platinum prices hit a new all-time high in New York trading. At the close platinum was trading at $1,515.30 an ounce, up $11.70 on the day, as concerns about supplies from Russian and South Africa took hold.
