Commodity prices continued to fall on Wednesday with US light crude slipping near 88 dollars a barrel.
The sell off – which pulled down share prices worldwide – was partly due to profit-taking. In addition investors and traders returning to work after the holidays have been adjusted their holdings following end-of-year balancing of portfolios.
A stronger dollar, in which commodities are priced, also had an effect. It is holding firm on hopes for US economic recovery.
Investors were looking to US jobs data due on Friday for confirmation that the world’s largest economy is recovering. That has been a key factor in recent share price rallies.
“There is some optimism with regards to the U.S. economy, but that is mixed with concerns over where Europe is going in the short- to medium-term. We are likely to remain very data sensitive,” said Keith Bowman, equity analyst at Hargreaves Lansdown.