LONDON (SHARECAST) - Oil prices tumbled Thursday to their worst levels in nearly two weeks on fears China will soon begin to tighten monetary policy.
A report revealing China’s economy grew by 10.3% in 2010, ahead of forecasts, had crude for February delivery down $2 to $88.86 a barrel in New York.
Fear is any attempt to keep inflation under control will slow growth and stifle demand for raw materials.
That overshadowed positive data out of the US that showed a bigger than expected decline in first time jobless claims last week and stronger than forecast US home sales, up 12.3% in December.
On the metals market, gold slumped to a two-month low, hurt by a stronger dollar and concerns China will start hiking rates soon.
February gold lost $23.70 to end the session at $1,346.50 an ounce, the lowest close since mid-November.
Silver also struggled, as did copper, platinum and recent star, palladium.
