Commodities: Oil hits skids as demand fears linger
Fears that a global recession will harm demand sent oil prices down to their lowest in over a month Monday, with sharp falls in major stock markets unnerving investors.
Brent crude for March delivery fell $1.78 to $87.45 a barrel in London, while US February crude fell more than $2 at one stage in electronic trade.
Market watchers said the closure of the New York Mercantile Exchange's floor trading session for the Martin Luther King Jr holiday was likely to have aided the downward pressure.
In addition, traders worried that OPEC is yet to decide whether or not to increase output when it meets on 1 February following confirmation from the United Arab Emirates oil minister.
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Meanwhile, most metals were taking a pounding on the same demand concerns that affected all commodity markets, with gold tumbling to it worst level in two weeks.
The yellow metal fell $13.50 to $866.70 an ounce in London as the euro weakened and investors sold to cover margin calls from losses incurred as a result of the sharp sell-off in equity markets.
Traders also pointed to increased volatility in the absence of business from the US, shut for a public holiday.
Elsewhere, silver, copper, platinum, palladium all joined the retreat.
