Commodities: Energy futures slip as dollar gains, flash crash in silver

A sharp drop in energy futures as the greenback strengthened and data revealed another rise in the number of US oil rigs in operation weighed on the commodities complex.

Better-than expected US jobs data for June saw the Bloomberg commodity index give back 0.74% to close at 81.81 as the US dollar spot index gained 0.22% to 96.001 on the heels of those numbers.

Energy was the weakest area of the market, with front month West Texas Intermediate crude oil futures losing 2.83% to $44.23 a barrel on NYMEX.

Natural gas and gasoline futures also headed lower, with the latter shedding 2.27% to $1.4482 a gallon.

According to Baker Hughes, the number of oil rigs in operation during the week ending on 7 July increased by seven to 763.

Precious metals were also weak, especially silver which lost 3.49% to $15.43/oz.

However, at one point during the Asian session it plummeted by 10% to $14.30/oz. in a 'flash crash' attributed by some market commentary to a trade error.

Gold futures for August delivery on COMEX also retreated, slipping 0.93% to 1,211.90.

Among soft commodities, cocoa fared worst with three-month LME futures closing 2.85% lower at $1,872 a metric tonne.