Oil is falling in early morning trade as European equities slump
and the euro continued to slide. Concerns about the spillover
effect of Europe's sovereign debt crisis, coupled with worries
about the U.S. economic recovery not being as strong as once
expected, are weighing down industrial commodity prices in
Gold, on the other hand, is bouncing back up again and reached a
record high in European trade as its attraction as a safe haven
asset particularly compared to the foreign exchange market.
At 0800 ET, Brent crude is 0.3% lower at $71.94 a barrel, while
light sweet crude is up 0.2% at $71.57 a barrel, and natural gas is
flat at $4.92 a million British thermal units.
Gold is up 0.7% at $1,249.30 an ounce, while silver is up 1.1%
at $18.36 an ounce, and copper is 0.4% lower at $2.75 a pound.
BP plc (
) is facing even greater scrutiny than before as it continues to
stop the oil spill in the Gulf of Mexico. President Barack Obama
said in a NBC television interview that he wants to know "whose ass
to kick" in dealing with one of the worst environmental disasters
in U.S. history. Obama also said that BP's CEO Tony Hayward would
have been fired by now had Hayward been working for him.
In Malaysia, ConocoPhilllips Co. (
) is in talks with Petronas to expand its upstream sector in the
country, according to Reuters.
In the metals market, German steel group Salzgitter (
) is seen to miss its earnings target for the steel sector this
year, according to CEO Wolfgang Leese. He told shareholders that
the company's break even target for its key business operation was
"still within reach, but more unlikely" to be realized.