June 23 (Bloomberg) -- Commodities dropped the most in seven weeks after the International Energy Agency announced plans to release emergency oil supplies and U.S. jobless claims rose more than economists forecast.
The Standard & Poor’s GSCI index of 24 commodities fell as much as 4.7 percent, the most since May 5, and was down 3.7 percent at 648.65 by 5:40 p.m. in London. Brent crude oil in London led the decline, falling 5.5 percent.
The IEA will make available 60 million barrels of crude to alleviate possible shortages following the loss of Libyan oil. The U.S. will release 30 million barrels from its Strategic Petroleum Reserve, as part of the IEA effort. U.S. jobless claims increased to 429,000 last week, exceeding the highest estimate in a Bloomberg News survey of 47 economists.
“The market’s perception is that there’s not enough demand,” said Christoph Eibl, co-founder of Zug, Switzerland- based Tiberius Group, which manages about $3 billion in commodities. “People are being caught off guard.”
Brent oil for August delivery dropped $6.21 to $108 a barrel on ICE Futures Europe. Crude oil for August delivery slumped 4.4 percent to $91.22 a barrel on the New York Mercantile Exchange.
“The IEA’s perception is that there’s not enough supply,” Eibl said.
Silver for September delivery declined 4.7 percent to $35.04 an ounce on the Comex in New York and raw sugar for October delivery slumped 1.9 percent to 25.5 cents a pound on ICE Futures U.S. in New York.
Copper for three-month delivery dropped 0.5 percent to $8,966.25 a metric ton on the London Metal Exchange.
Corn for December delivery tumbled 3.6 percent to $6.2675 a bushel and wheat declined 3.5 percent to $6.4975 a bushel.
Gold for August delivery fell 2.2 percent to $1,519.90 an ounce, the first drop in eight sessions, and palladium for immediate delivery declined 2.5 percent to $745.50 an ounce.
--Editors: Claudia Carpenter, Stuart Wallace
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