Commodities futures are mostly lower this morning with crude oil
down another $1.36 to $86.51 a barrel after falling $1.24 on
Gold futures also are lower today, more than giving back
yesterday's small gains. Copper and silver are down too.
Commodities have been trending lower during much of January as
stock prices climb along with rising confidence in an economic
recovery taking away their appeal as an asset class. Gold, in
particular, has been under increased selling pressure with the most
heavily traded February contract on the Comex in New York now down
more than $100 an ounce since hitting $1,432 an ounce on Dec. 8. At
last look, the yellow metal was down $18.50 to $1,326 an ounce.
Silver is off $0.586 to $26.735 an ounce.
Crude fell yesterday after Saudi Arabian Oil Minister Ali
al-Naimi signaled OPEC may bolster production and maintain spare
capacity to meet rising fuel demand. Brent crude also is down this
morning, giving up 1.2% to $95.45 a barrel.
In company news, Hercules Offshore (
) said it will invest $10 mln in Discovery Offshore S.A., which is
building two ultra high-specification jackup rigs -- with options
for two more -- at Keppel FELS in Singapore. Hercules Offshore also
signed a construction management contract for the project and
receive undisclosed payments for overseeing rigs operated by
Toronto Stock Exchange officials have delayed a decision on a
shareholders' rights plan by Niocan Inc (NIO.TO) as the rare-earths
miner weighs alternative buyout proposals. The company adopted the
plan last Friday in response to offers from Augyva Mining Resources
Inc (AUV.V) and Nio-Metals Holdings LLC, its largest shareholder.
The rights plan remain in effect, the firm said, despite the TSX
deferring a review.