CommoditiesOil fell to a four-week low even as the Organization...

Commodities

Oil fell to a four-week low even as the Organization of the Petroleum Exporting Countries and allies again stared down calls for sharp increases in production. The cartel stuck to a previously-announced plan to raise output by 400,000 barrels per day next month.

“There is speculation that major oil consumer nations will open their strategic petroleum reserves if OPEC+ does not play nice,” Robert Yawger, executive director of energy futures at Mizuho, said.

Brent crude settled US$1.45 or 1.8 per cent lower at US$80.54 a barrel. The US benchmark dropped 2.5 per cent to US$78.81.

Iron ore reversed Wednesday’s tentative rebound. SGX TSI iron ore futures dropped 3 per cent or US$3.02 to US$96.19 a tonne.

BHP’s US-listed stock fell 0.99 per cent after its UK-listed stock bounced 0.83 per cent. Rio Tinto shed 2.01 per cent in the US and 0.57 per cent in the UK.

Gold was a big winner from the decline in treasury yields. Metal for December delivery settled US$29.60 or 1.7 per cent ahead at US$1,793.50 an ounce. The NYSE Arca Gold Bugs Index fell 0.46 per cent.

Aluminium plunged 4 per cent on the London Metal Exchange after China’s daily coal output neared the highest this year, clearing the way for increased smelting. The increase was expected to ease a power shortage that had forced aluminium smelters to reduce production.

Benchmark copper firmed 0.5 per cent to US$9,699 a tonne. Nickel shed 0.2 per cent, lead 1.2 per cent, zinc 1.9 per cent and tin 2.2 per cent.