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Thursday, March 5, 2009
ENERGIES
News that China may not activate a second stimulus plan is putting pressure on April Crude Oil this morning. Without China’s spending, demand for crude oil is likely to continue to fall.
OPEC may try to curb losses in the crude oil market by cutting production at its next meeting on March 15 but there is almost no way to estimate how much demand will continue to drop.
METALS
April Gold and May Silver have regained their status as safe haven assets this morning as traders are once again buying the precious metals as protection against the possibility of a decline in the stock market.
Industrial metals such as April Platinum and May Copper may feel pressure now that China is not going to activate a second stimulus plan. Demand for these two metals is likely to drop as worldwide production and manufacturing is falling. Losses may be limited in platinum if traders treat this market as a safe-haven metal instead of an industrial metal.
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