Brent crude price hits fresh record, as metals shine
Sunday, 30 September 2007
LONDON, Sept 29 (AFP): Crude oil prices struck fresh record high points this week amid tight global supplies of energy.
Oil and other commodities priced in dollars also benefited from a weak US dollar as they became cheaper for buyers using stronger currencies.
The euro breached 1.42 dollars Friday for the first time as the US currency came under heavy selling pressure on expectations of further interest rate cuts in the United States, dealers said.
The US Federal Reserve last week cut its key interest rate by a bigger- than-expected 50 basis points to 4.75 per cent.
OIL: The price of London Brent crude oil rocketed to a record high 81.05 dollars per barrel Friday owing to concerns over stretched global energy supplies.
New York's oil price had soared to a record 84.10 dollars the previous week.
Prices spiked by more than two and a half dollars Thursday, with London smashing through 80 dollars for the first ever time owing to stormy weather in the rig-heavy Gulf of Mexico.
Traders Friday said investment funds weighed into the market, encouraged also by the weak US dollar and expectations for strong crude demand.
PRECIOUS METALS: The price of gold surged Friday to the highest level since January 1980 as the precious metal was boosted by the sliding US dollar.
On the London Bullion Market, gold prices leapt as high as 745.84 dollars an ounce.
Gold is winning support from record crude oil prices, which spark fears over inflation. Gold is seen as a store of value and a hedge against inflation.
Platinum Friday struck 1,386.00 dollars an ounce on the London Platinum and Palladium Market, a level last seen in November 2006 when the precious metal had struck a record high 1,402.50 dollars.
BASE METALS: Base metals prices gained from the weak dollar, while lead struck an historic high in London trading Thursday also thanks to supply difficulties. "Along with supportive (supply and demand) fundamentals, the weakening US dollar is helping to fuel base metal price gains," Barclays Capital analysts said.
On Friday, the price of copper for delivery in three months advanced to 8,098.00 dollars a tonne on the London Metal Exchange, from 8,009.50 dollars a week earlier. Three-month aluminium prices gained to 2,518 dollars a tonne, from 2,437 dollars. Three-month nickel prices fell to 31,450 dollars a tonne, from 32,799 dollars.
COCOA: Cocoa prices again made strong gains owing to concerns over tight supplies in leading producer Ivory Coast.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery grew to 999 pounds a tonne, from 990 pounds a week earlier.
On the New York Board of Trade (NYBOT), the December contract advanced to 2,025 dollars a tonne, from 1,983 dollars the previous Friday.
COFFEE: Coffee prices steadied in London and New York. By Friday on the LIFFE, Robusta quality for November delivery increased to 1,910 dollars a tonne, from 1,874 dollars one week earlier. On the NYBOT, Arabica for December delivery decreased to 128.15 US cents a pound, from 131.60 cents.
SUGAR: Sugar prices dropped in London but rallied in New York amid expectations of a large surplus for the sweetener.
By Friday on the LIFFE, the price per tonne of white sugar for December delivery dipped to 280.50 pounds, from 281.00 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for March delivery increased to 10.12 US cents a pound, from 9.85 cents for the October contract a week earlier. The October contract had been the most traded the previous week.
RUBBER: Rubber prices rose marginally this week to maintain gains for eight straight weeks. Surging crude oil prices-which makes synthetic rubber more expensive-continued to lend support, an official from a rubber producing firm said.
By Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 216.70 US cents per kilo, from 216.60 the previous week.
Oil and other commodities priced in dollars also benefited from a weak US dollar as they became cheaper for buyers using stronger currencies.
The euro breached 1.42 dollars Friday for the first time as the US currency came under heavy selling pressure on expectations of further interest rate cuts in the United States, dealers said.
The US Federal Reserve last week cut its key interest rate by a bigger- than-expected 50 basis points to 4.75 per cent.
OIL: The price of London Brent crude oil rocketed to a record high 81.05 dollars per barrel Friday owing to concerns over stretched global energy supplies.
New York's oil price had soared to a record 84.10 dollars the previous week.
Prices spiked by more than two and a half dollars Thursday, with London smashing through 80 dollars for the first ever time owing to stormy weather in the rig-heavy Gulf of Mexico.
Traders Friday said investment funds weighed into the market, encouraged also by the weak US dollar and expectations for strong crude demand.
PRECIOUS METALS: The price of gold surged Friday to the highest level since January 1980 as the precious metal was boosted by the sliding US dollar.
On the London Bullion Market, gold prices leapt as high as 745.84 dollars an ounce.
Gold is winning support from record crude oil prices, which spark fears over inflation. Gold is seen as a store of value and a hedge against inflation.
Platinum Friday struck 1,386.00 dollars an ounce on the London Platinum and Palladium Market, a level last seen in November 2006 when the precious metal had struck a record high 1,402.50 dollars.
BASE METALS: Base metals prices gained from the weak dollar, while lead struck an historic high in London trading Thursday also thanks to supply difficulties. "Along with supportive (supply and demand) fundamentals, the weakening US dollar is helping to fuel base metal price gains," Barclays Capital analysts said.
On Friday, the price of copper for delivery in three months advanced to 8,098.00 dollars a tonne on the London Metal Exchange, from 8,009.50 dollars a week earlier. Three-month aluminium prices gained to 2,518 dollars a tonne, from 2,437 dollars. Three-month nickel prices fell to 31,450 dollars a tonne, from 32,799 dollars.
COCOA: Cocoa prices again made strong gains owing to concerns over tight supplies in leading producer Ivory Coast.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery grew to 999 pounds a tonne, from 990 pounds a week earlier.
On the New York Board of Trade (NYBOT), the December contract advanced to 2,025 dollars a tonne, from 1,983 dollars the previous Friday.
COFFEE: Coffee prices steadied in London and New York. By Friday on the LIFFE, Robusta quality for November delivery increased to 1,910 dollars a tonne, from 1,874 dollars one week earlier. On the NYBOT, Arabica for December delivery decreased to 128.15 US cents a pound, from 131.60 cents.
SUGAR: Sugar prices dropped in London but rallied in New York amid expectations of a large surplus for the sweetener.
By Friday on the LIFFE, the price per tonne of white sugar for December delivery dipped to 280.50 pounds, from 281.00 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for March delivery increased to 10.12 US cents a pound, from 9.85 cents for the October contract a week earlier. The October contract had been the most traded the previous week.
RUBBER: Rubber prices rose marginally this week to maintain gains for eight straight weeks. Surging crude oil prices-which makes synthetic rubber more expensive-continued to lend support, an official from a rubber producing firm said.
By Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 216.70 US cents per kilo, from 216.60 the previous week.