Commodities: Energy futures weakest after IEA cuts forecasts

Commodities came under pressure as the US dollar strengthened despite dovish remarks from a key US central bank official overnight.

The Bloomberg Commodity index was falling 1.27% to 83.02 as of 1947 BST as the US dollar spot index rose 0.51% to 95.63.

Energy was a particularly weak corner of the market after the rich world's energy watchdog, the International Energy Agency, lowered its forecasts for global oil demand growth in 2016 and 2017, meaning it was now expected to take longer for the world to get rid of its surplus of oil.

Front month Brent crude futures retreated 2.72% to $47.04 per barrel on the ICE, alongside losses of 3.2% to $44.86 per barrel for West Texas Intermediate.

The metals space was mixed, with three-month LME-traded nickel and zinc futures sliding by 1.5% and 1.1% to $9,925 and $2,242.00 a tonne, respectively.

LME copper futures were also to be seen slightly higher, tacking on 0.2% to $4,646 per tonne on the back of stronger-than-expected economic data out of China.

However, rebar futures traded on the Shanghai Futures Exchange fell by $3.90 to $339 a tonne overnight, as iron ore futures traded on the Dalian Commodity Exchange lost $1 to $59.0.

Among precious metals, spot platinum fared worst, losing 2.26% to close at $1,031.95/oz..

Over in the soft commodities space, it was much the same story, with December 2016 corn futures on the Chicago Board of Trade losing 2.8% to $3.30 per bushel, while similarly-dated wheat futures surrendered 2.02% to $4.01 per bushel.