World commodity update for 23/02/2009

Crude oil rose above $40 a barrel in New York after Asian equity markets gained on signs the U.S. government is taking steps to prevent further bank failures, preventing the recession from deepening. The Organization of Petroleum Exporting Countries may decide to make another production cut should oil prices continue to fall, Chakib Khelil, the Algerian oil minister and former OPEC president, said yesterday. Crude Oil is trading at $40.075 as of 9:05am, GMT.


Gold declined in Asia as some investors sold the metal to lock in gains after it rallied above $1,000 an ounce last week for the first time in almost a year. The cost of fiscal stimulus packages and a decline in tax revenues because of the global recession has left investors worried about 'currency debasement and the possibility of higher long-term inflation,' John Reade, UBS AG analyst, said in a report. 'We believe that it is these fears that have triggered the recent surge of investment flows into gold.'