Bad economic news hurts oil, copper prices

Crude oil prices were lower Friday on fears that the recession will get worse and that demand, which has recovered slightly, will decline again.

New numbers showed that consumer spending was down by 4.3 percent in the US last quarter, while the US gross domestic product dropped 6.2 percent on an annualized basis in the fourth quarter of 2008.

April contracts for West Texas Intermediate crude dropped 74 cents to $44.48 per barrel near the close of floor trade on the New York Mercantile Exchange.

Nymex April gasoline futures were even at $1.39 per gallon in afternoon trade, while April heating oil dropped 3 cents to $1.26 per gallon but April natural gas added 16 cents to $4.24 per million British thermal units.

May copper was down 4 cents to $1.54 per pound in New York trade, while three-month copper on the London Metal Exchange dropped $60 to $3,440 per tonne, $5,500 per tonne below its peak price in early July 2008.

The price declines came on disappointing economic news from the United States and on a Deutsche Bank (FWB: DBK; NYSE: DB) forecast that the price of copper will average $1.275 per pound this year.

Precious metals prices were mixed as silver and platinum saw gains but gold dropped 10 cents to $942.50 per troy ounce in New York after going as high as $964 per troy ounce earlier in the session.

May silver added 14 cents to $13.11 per troy ounce while April platinum gained $33.20 to $1,083.70 per troy ounce.

Grains prices were mixed on the Chicago Board of Trade at March soybeans added 5 cents to $8.74 per bushel but March wheat was down 3 cents to $5.10 per bushel and March corn dropped 11 cents to $3.50 per bushel.

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