Commodities Retreat, Crude Oil Slumps Over 2% (USO, UNG, SLV, GLD, RIG, AONE)

Commodities were trading lower on Thursday following weakness in equities with Crude oil slumped over 2% to around $105 mark a barrel on reports of release of strategic oil reserves by U.S. and some European governments.Brent crude fell 1.7% to below $124 per barrel, while U.S. crude futures lost 2.02% to $105.18. France, the United States and Britain are in negotiations about the possible release of strategic oil stocks to push fuel prices lower, French ministers said, weeks ahead of the country's presidential election.Also pressuring the crude oil is higher than expected increase in inventories. The Energy Information Administration reported a rise of 7.1 million barrels of crude in the week ended March 23, well above analysts’ estimates of a rise of 2.75 million barrels.Natural gas for April delivery fell 4 cents, or 1.60%, to $2.17 per million British thermal units. April gasoline slid 4 cents, or 1.2%, to $3.37 a gallon, as April heating oil lost 2 cents, or 0.6%, at $3.20 a gallon.

In metal space, Gold futures also fell after recent rally with equities. Gold for April delivery declined $12, or 0.5%, to $1,672 an ounce on the Comex division of the New York Stock Exchange.May copper fell 8 cents, or 2%, to $3.80 a pound. May silver lost 36 cents, or 1.10%, at $32.26 an ounce.Palladium for June delivery lost $13.55, or 2%, to $649.45 an ounce, while the April contract for sister metal platinum slid $14.70 or 9%, to $1,642.80 an ounce.

This morning, the Commerce Department reported orders for long-lasting goods climbed 2.2% in February, missing the 2.9% anticipated by analysts.The closely watched core capital goods segment, which excludes volatile defense and transportation, rose 1.2% last month.

United States Oil Fund LP (ETF)(NYSEARCA:USO) was down 0.69 (-1.69%) at $40.02, United States Natural Gas Fund, LP(NYSEARCA:UNG) lost 0.04 (-0.23%) to $17.15. SPDR Gold Trust (ETF)(NYSEARCA:GLD) is down 0.87 (-0.53%) to $162.37, iShares Silver Trust (ETF)(NYSEARCA:SLV) fell over 1% to $31.27.
Transocean LTD(NYSE:RIG) shares slid over 2% despite analyst at Morgan Stanley expects the stock should benefit the most this year from a surge in demand.
A123 Systems, Inc.(NASDAQ:AONE) continued to slid and lost another 13.60% to $1.21 after falling over 16% in the prior two trading sessions. The stock came under pressure after decided to replace battery packs due to a manufacturing defect.