NEW YORK (Dow Jones)--Comex copper futures followed equity markets lower Friday, as roaring crude oil prices cast a shadow on global economic growth.
The most actively traded contract, for May delivery, settled down 0.1%, or 0.45 cent lower, at $4.4855 per pound on the Comex division of the New York Mercantile Exchange.
The front-month contract, for March delivery, settled down 0.1%, or 0.25 cent, at $4.4725 per pound.
A steady slide in the Dow Jones Industrial Average, which saw all 30 component stocks in negative territory by 1 p.m., weighed on copper prices Friday. The red metal is widely used in industrial processes, and is sensitive to investor expectations for that market sector.
The DJIA was recently down 165.0 points, or 1.4%, at 12093.2.
"Copper is just used in so many different processes that as the Dow comes down and economic activity slows there's going to be less demand for it," said Charles Nedoss, senior market strategist at Olympus Futures.
Meanwhile, reports of fighting near Libya's oil facilities pushed crude oil prices to their highest level since September 2008. Simmering unrest in the Middle East has fanned investor concerns about secure oil supply, lifting crude futures to a high of $104.44 a barrel Friday.
Rising energy prices are considered a burden on economic growth, as they force consumers to divert money from discretionary spending that feeds economic activity. In the case of copper, this means less demand for goods like iPads, air-conditioners and cars, all of which use the metal.
Earlier in the day, copper futures rallied to a high of $4.5540 a pound ahead of the U.S. non-farm payrolls report as traders bid prices higher amid positive expectations.
The U.S. economy added 192,000 new jobs in February, while the unemployment rate fell to 8.9%, dipping below 9% for the first time since April 2009, the Labor Department said in its monthly report Friday.
Economists had expected the unemployment rate to rise to 9.1% and forecast payrolls to increase by 200,000.
Sustained improvement in the U.S. labor market is supportive of higher copper demand. The red metal is widely used in consumer electrical and electronic products, a sector that does well when consumers have more discretionary income.
However, copper prices eased off their highs after the data as market participants moved to cash in their gains.
"We've run up the market expecting a good number, which we got, and we're taking profits," said Frank Lesh, analyst at FuturePath Trading in Chicago.