Crude oil futures decline as US dollar strengthens, copper and aluminium prices advance

💡 Crude oil futures fell as the US dollar strengthened, while copper and aluminium prices rose on the Multi Commodity Exchange (MCX)

The commodity market experienced a mixed day on January 14, with crude oil futures falling due to a strengthening US dollar. The decline in crude oil prices was partly offset by gains in copper and aluminium prices on the Multi Commodity Exchange (MCX).

Crude Oil Falls on Strong Dollar

Crude oil futures for February delivery on the New York Mercantile Exchange (NYMEX) fell 3.4% to $73.45 a barrel, as the US dollar strengthened against major currencies. The strong dollar makes crude oil more expensive for buyers using other currencies, which in turn reduces demand and drives prices lower.

Copper and Aluminium Prices Advance on MCX

In contrast, copper prices on the MCX rose 1.1% to $8,410 per tonne, while aluminium prices gained 0.8% to $2,345 per tonne. The gains in copper and aluminium prices were driven by increased demand from the manufacturing sector and expectations of higher prices due to supply constraints.

Gold Prices Decline

Gold prices on the Comex division of the New York Mercantile Exchange (NYMEX) fell 0.5% to $1,870 an ounce, as the strengthening US dollar reduced the metal's appeal as a safe-haven asset.

What It Means for Investors