Commodities prices rose across the board, with oil surging above $70 a barrel, supported by producers cutting output in response to falling prices and lower consumption. But traders said the gains could be short lived as demand remained subdued.

The worries about weak demand were exacerbated by a report from the United Nations Conference on Trade and Development that warned that “the unfolding financial crisis has spread to international trade with negative implications for developing countries, especially those dependent on commodities”. The Baltic Dry Index, a benchmark of freight cost for dry bulk commodities such as iron ore, coal or grains, dropped 1.45 per cent to a fresh nine-year low. The index is trading only 5 per cent above a 22-year low.