Raw materials largely fall on concerns about the economy (AP)

Commodity prices fell sharply Thursday on further evidence of a slowdown in the global economy and a decision of a group representing 28 countries to release emergency oil supplies in the market in an attempt to lower prices.

The decline came across the Board. Oil is down 4.6 percent, silver fell 4.7%, gold lost 2.1 percent and heating oil fell 5.8 percent.

There were indications of weaker economic growth in China, United States and Europe.

In the United States, the number of people who applied for unemployment benefits last week rose unexpectedly, indication of weakness in the labour market. That came a day after the Fed Chairman Ben Bernanke said problems plaguing the economy may be worse than initially thought.

Meanwhile the production grew more slowly in June in China and Europe, according to the Purchasing Manager indexes compiled by HSBC and Markit economics.

Oil prices dipped after the International Energy Agency, which includes the United States and other countries, 27, said he would release 60 million barrels of oil from the emergency stocks for a period of 30 days to try to stave off higher prices of energy that could strain the global economic recovery. Half the supply is by the United States

"There are certainly concerns to go ahead, economic growth," said Dave Meger, vice President of metals trading at vision financial markets. "And, equally important, the idea that there is no hint of any type of stimulus to be ... supplied by the Fed."

Benchmark crude for August delivery fell $4,39 to settle at $ 91.02 per barrel on the New York Mercantile Exchange.

In other Nymex contracts, heating oil fell 17.15 cents or 5.8 percent, to settle at $ 2.7994 per gallon, gasoline dropped 15.24 cents to $ 2.7764 per gallon and natural gas dropped to $ 12.4 cents per 1,000 cubic feet 4,193.

August gold fell $ 32.90 to settle at $ 1 an ounce, 520.50 and September Palladium fell to $27,30 or 3.5 per cent, to $ 743.35 an ounce.

July contracts in metals, silver fell $ 1,737 or 4.8%, to settle at $ 35,002 ounce, copper fell 4.9 cents per pound to $ 4,039 and Platinum fell $57,90, or 3.3%, up to 1, $ 694.50 per ounce.

Cereals and beans also dropped. September wheat fell 4 cents to settle at $ 6.6925 a bushel, corn December fell $ 6.46 4.25 cents a bushel and November soybeans fell cent to $ 15.25 13.1725 bushel.

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