With economic slowdown across the globe, the demand for crude oil remained downcast and the supply was ample. Crude oil prices corrected significantly in the month of April. They were hit by the spring slowdown of the United States. Even the US labor market recovery has lost its momentum in the month of March. Increases jobless claims in US negatively affected the Crude oil prices.US crude inventories were recorded at two decade high and demand in Euro Zone was recorded at three decade low. The growth sentiments were further weakened by a cut in growth forecast by International Monetary Fund. The Crude oil prices remained bearish during the month.
Demand and supply phenomena played its role in determining the base metal prices during the month. Piling stocks of Aluminum in LME —registered warehouses were highlighting the lesser demand for the metal. With the investors being bearish on the growth prospects, the lower price of the metal is failing to attract the investors. In fact a recent low of aluminum in the year of 2012 was able to drive the demand up by only one percent.
Amid the concerns of global recovery and lessened demand from its largest consumer China, Copper prices slid during the month of April. Speculators opted for short positions ahead of holiday in China to further put a down ward pressure on the metal. Lesser demand meant that even the reserves of copper at their high in over a decade’s time. The specula-tion around lesser demand for the metal due to earthquake in China’s Sichuan province pegged back the prices of copper. Nickel, Tin and Lead followed the suit of Copper and recorded losses on the back of economic slowdown in China.