Oil down to near $66 as stocks weaken

Oil prices fell to near $66 (U.S.) a barrel Tuesday as European stock markets dropped slightly and investors awaited a slew of data on the U.S. economy.

Copper weakens as Chinese demand softens

LONDON - Copper fell on Tuesday as supportive buying from China waned, and as the world's top consumer of the metal approaches a holiday period.

Copper for three-months delivery on the London Metal Exchange traded at $5,940 (U.S.) a tonne in official rings from a close of $6,009 on Monday.

This year's copper rally follows a 50-per cent fall in 2008.

"LME stocks are on the rise and prices are responding accordingly," Mr. Kernot said.

Underlining demand concerns is a recent climb in copper inventories, after this year's trend of nearly constant falls started to turn around in mid-July.

Analysts warn of further price weakness ahead as week-long Chinese holidays start on Oct. 1 and as the copper market enters the traditionally weak fourth quarter.

Among other industrial metals, aluminum was at $1,817 from $1,833. Inventories of the metal used in transport and packaging fell 3,850 tonnes but are still within touching distance of a record high around 4.6 million tonnes.


Zinc was at $1,893.5 from $1,878 and lead stood at $2,201 from $2,207.

Tin was quoted at $14,410/14,450 from $14,400. The backwardation on the metal - a premium for cash material over three-month delivery - stands at $625, as a dominant position holds more than 90 per cent of LME tin. This is versus a backwardation of $260 on Sept. 17.

Nickel was quoted at $16,895/16,900 from $16,750.

24 Hour Base Metals