Brent oil price spikes close to record $78
Sunday, 15 July 2007
LONDON, July 14 (AFP): World oil prices surged this week as speculators rushed into the market amid tight American fuel supplies, driving London's Brent crude within grasp of a new record high.
Many commodities won support from the falling US currency, which increase demand for dollar-denominated commodities, such as gold and crude oil, as they become less expensive for buyers holding other currencies.
The euro shot up over 1.38 dollars here Friday for the first time since its creation in 1999, touching 1.3814 dollars, as weaker-than-expected retail sales in the United States compounded concerns about the country's economy.
OIL: The price of Brent North Sea crude for August delivery leapt to 77.68 dollars-the highest point since August 10, 2006.
That was less than a dollar below the record high of 78.64 dollars set on August 7 last year.
And New York's main oil futures contract, light sweet crude for delivery in August, hit 74.00 dollars, last seen on August 11, 2006, but some way off the record high of 78.40 dollars set the previous month.
Prices were also lifted by news that the International Energy Agency has lifted its 2008 forecast for oil product demand by 2.5 per cent to 88.2 million barrels a day.
GOLD: The price of gold advanced as the precious metals complex was lifted by the diving US dollar and soaring oil prices.
Gold benefits from higher crude prices, which increase the risk of inflation. That increases the attractiveness of the precious metal as a defence against the erosion of the value of money.
On the London Bullion Market, gold jumped to 666.50 dollars an ounce at Friday's late fixing, from 648.75 dollars a week earlier.
SILVER: Silver prices vaulted higher in line with other precious metals, hitting a three-week high of 13.16 dollars.
On the London Bullion Market, silver increased to 13.13 dollars an ounce at Friday's late fixing, from 12.40 dollars a week earlier.
PALLADIUM AND PLATINUM: The sister metals both rose as the weak US currency weakened, and a strike loomed in key producer South Africa.
On the London Platinum and Palladium Market, platinum jumped to 1,313 dollars an ounce at the late fixing Friday, from 1,287 dollars a week earlier.
Palladium stood at 368 dollars an ounce, from 363 dollars.
BASE METALS: Lead prices hit another record high, rising in line with most base metals, but nickel and copper prices pulled back following recent strong gains.
Lead hit surged as high as 3,040 dollars a tonne, lifted by keen Chinese demand.
Elsewhere in the base metals sector, Anglo-Australian miner Rio Tinto launched a blockbuster bid to buy Alcan for 38.1 billion dollars (27.6 billion euros) to create the world's biggest aluminium company.
On Friday, the price of copper for delivery in three months eased to 7,780 dollars a tonne on the London Metal Exchange, from 7,816 dollars a week earlier.
Three-month aluminium prices rose to 2,798 dollars a tonne, from 2,791 dollars. Three-month nickel prices fell to 32,700 dollars a tonne, from 35,510 dollars. Three-month lead prices rocketed to 3,000 dollars a tonne, from 2,645 dollars. Three-month zinc prices jumped to 3,550 dollars a tonne, from 3,385.50 dollars. Three-month tin prices advanced to 14,175 dollars a tonne, from 14,115 dollars.
COCOA: Cocoa prices fell away from recent peaks hit the previous week amid unrest in key producer Ivory Coast.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for September delivery retreated to 1,102 pounds a tonne, from 1,138 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September contract slid to 2,075 dollars a tonne, from to 2,123 dollars the previous Friday.
COFFEE: Coffee prices were mixed, but fell in London on profit-taking after rising close to a nine-year high.
London coffee prices had surged to nine-year highs a fortnight ago amid market worries over lower exports from Vietnam, which is the world's second-biggest coffee producer after Brazil.
By Friday on the LIFFE, Robusta quality for September delivery dipped to 1,805 dollars a tonne, from 1,890 dollars a tonne one week earlier.
On the NYBOT, Arabica for September delivery firmed to 109.85 US cents a pound, from 109.70 cents.
GRAINS AND SOYA: Maize, wheat and soya prices rose across the board in Chicago.
By Friday on the Chicago Board of Trade, the price of maize for September delivery climbed to 3.477 dollars a bushel, from 3.415 dollars a week earlier.
Wheat for September delivery rose to 6.20 dollars a bushel, from 6.10 dollars.
August-dated soyabean meal-used in animal feed-increased to 9.09 dollars, from 8.69 dollars.
On the LIFFE, the price per tonne of wheat for November delivery rose to 118.85 pounds, from 117.50 pounds.
SUGAR: Sugar prices were mixed amid the prospect of a global production surplus this year.
By Friday on the LIFFE, the price a tonne of white sugar for August delivery slid to 309.40 dollars, from 320.50 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for October delivery firmed to 9.99 US cents a pound, from 9.17 cents for the July contract.
RUBBER: The price of rubber fell slightly as favourable weather conditions increased supplies in key producing nations.
Rubber prices are "on the downtrend due to improved weather which brings in more crops and improves supply," said an official with a rubber producing firm.
On Friday, the Malaysian Rubber Board's benchmark SMR20 was fell slightly to 200.45 US cents per kilogram, compared with 200.65 US cents last week.
Many commodities won support from the falling US currency, which increase demand for dollar-denominated commodities, such as gold and crude oil, as they become less expensive for buyers holding other currencies.
The euro shot up over 1.38 dollars here Friday for the first time since its creation in 1999, touching 1.3814 dollars, as weaker-than-expected retail sales in the United States compounded concerns about the country's economy.
OIL: The price of Brent North Sea crude for August delivery leapt to 77.68 dollars-the highest point since August 10, 2006.
That was less than a dollar below the record high of 78.64 dollars set on August 7 last year.
And New York's main oil futures contract, light sweet crude for delivery in August, hit 74.00 dollars, last seen on August 11, 2006, but some way off the record high of 78.40 dollars set the previous month.
Prices were also lifted by news that the International Energy Agency has lifted its 2008 forecast for oil product demand by 2.5 per cent to 88.2 million barrels a day.
GOLD: The price of gold advanced as the precious metals complex was lifted by the diving US dollar and soaring oil prices.
Gold benefits from higher crude prices, which increase the risk of inflation. That increases the attractiveness of the precious metal as a defence against the erosion of the value of money.
On the London Bullion Market, gold jumped to 666.50 dollars an ounce at Friday's late fixing, from 648.75 dollars a week earlier.
SILVER: Silver prices vaulted higher in line with other precious metals, hitting a three-week high of 13.16 dollars.
On the London Bullion Market, silver increased to 13.13 dollars an ounce at Friday's late fixing, from 12.40 dollars a week earlier.
PALLADIUM AND PLATINUM: The sister metals both rose as the weak US currency weakened, and a strike loomed in key producer South Africa.
On the London Platinum and Palladium Market, platinum jumped to 1,313 dollars an ounce at the late fixing Friday, from 1,287 dollars a week earlier.
Palladium stood at 368 dollars an ounce, from 363 dollars.
BASE METALS: Lead prices hit another record high, rising in line with most base metals, but nickel and copper prices pulled back following recent strong gains.
Lead hit surged as high as 3,040 dollars a tonne, lifted by keen Chinese demand.
Elsewhere in the base metals sector, Anglo-Australian miner Rio Tinto launched a blockbuster bid to buy Alcan for 38.1 billion dollars (27.6 billion euros) to create the world's biggest aluminium company.
On Friday, the price of copper for delivery in three months eased to 7,780 dollars a tonne on the London Metal Exchange, from 7,816 dollars a week earlier.
Three-month aluminium prices rose to 2,798 dollars a tonne, from 2,791 dollars. Three-month nickel prices fell to 32,700 dollars a tonne, from 35,510 dollars. Three-month lead prices rocketed to 3,000 dollars a tonne, from 2,645 dollars. Three-month zinc prices jumped to 3,550 dollars a tonne, from 3,385.50 dollars. Three-month tin prices advanced to 14,175 dollars a tonne, from 14,115 dollars.
COCOA: Cocoa prices fell away from recent peaks hit the previous week amid unrest in key producer Ivory Coast.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for September delivery retreated to 1,102 pounds a tonne, from 1,138 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September contract slid to 2,075 dollars a tonne, from to 2,123 dollars the previous Friday.
COFFEE: Coffee prices were mixed, but fell in London on profit-taking after rising close to a nine-year high.
London coffee prices had surged to nine-year highs a fortnight ago amid market worries over lower exports from Vietnam, which is the world's second-biggest coffee producer after Brazil.
By Friday on the LIFFE, Robusta quality for September delivery dipped to 1,805 dollars a tonne, from 1,890 dollars a tonne one week earlier.
On the NYBOT, Arabica for September delivery firmed to 109.85 US cents a pound, from 109.70 cents.
GRAINS AND SOYA: Maize, wheat and soya prices rose across the board in Chicago.
By Friday on the Chicago Board of Trade, the price of maize for September delivery climbed to 3.477 dollars a bushel, from 3.415 dollars a week earlier.
Wheat for September delivery rose to 6.20 dollars a bushel, from 6.10 dollars.
August-dated soyabean meal-used in animal feed-increased to 9.09 dollars, from 8.69 dollars.
On the LIFFE, the price per tonne of wheat for November delivery rose to 118.85 pounds, from 117.50 pounds.
SUGAR: Sugar prices were mixed amid the prospect of a global production surplus this year.
By Friday on the LIFFE, the price a tonne of white sugar for August delivery slid to 309.40 dollars, from 320.50 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for October delivery firmed to 9.99 US cents a pound, from 9.17 cents for the July contract.
RUBBER: The price of rubber fell slightly as favourable weather conditions increased supplies in key producing nations.
Rubber prices are "on the downtrend due to improved weather which brings in more crops and improves supply," said an official with a rubber producing firm.
On Friday, the Malaysian Rubber Board's benchmark SMR20 was fell slightly to 200.45 US cents per kilogram, compared with 200.65 US cents last week.