New York oil price hits 11-month peak, metals dented
Sunday, 29 July 2007
LONDON, July 28 (AFP): The price of oil in New York soared nearer to its record high this week, but Brent crude ended lower on concerns that US economic troubles could spread to the global economy and dampen energy demand.
Metals benefited early in the week as the dollar fell sharply, especially against the euro which reached an all-time high against the US unit. But gains were largely wiped out by Friday owing to the dollar's recovery.
A strong dollar hurts demand for dollar-denominated commodities, such as metals, because they become more expensive for buyers holding weaker-performing currencies.
OIL: In a turbulent week for the oil market, prices spiked to an 11- month peak in New York amid concern over tight US energy supplies.
The International Energy Agency, which has repeatedly called on OPEC to pump more crude, recently raised its 2008 forecast for oil demand by 2.5 per cent to 88.2 million barrels a day.
On Thursday the New York oil price hit 77.24 dollars per barrel-a level last seen on August 9, 2006 -- as keen global demand and tight supplies fuelled speculative buying. New York's record high of 78.40 dollars was set a year ago.
By Friday, Brent North Sea crude for September delivery dropped to 75.99 dollars a barrel Friday, compared with 77.63 dollars a barrel a week earlier.
New York's main oil futures contract, light sweet crude for delivery in September, gained to 76.11 dollars a barrel, from 75.79 dollars a barrel.
GOLD: Gold prices struck seven week highs.
The precious metal hit 687.40 dollars an ounce Tuesday-the highest point since June 6 as the European single currency reached an historic peak of 1.3852 dollars. But the dollar's recovery towards the end of the week saw gold lose its strong gains.
On the London Bullion Market, gold dropped to 660.50 dollars an ounce at Friday's late fixing, from 681.60 dollars a week earlier.
SILVER: Silver prices mirrored the path taken by sister metal gold, rising to 13.50 dollars an ounce at the start of the week, before slipping back later.
On the London Bullion Market, silver slid to 12.75 dollars an ounce at Friday's late fixing, from 13.29 dollars a week earlier.
PALLADIUM AND PLATINUM: Palladium and platinum prices fell in line with other precious metals.
On the London Platinum and Palladium Market, platinum fell to 1,284 dollars an ounce at the late fixing Friday, from 1,332 dollars a week earlier.
Palladium declined to 362 dollars an ounce, from 370.50 dollars.
BASE METALS: Base metals prices mostly slumped owing to concern that demand for commodities could decline as strains in the US economy spread around the world.
On Friday, the price of copper for delivery in three months decreased to 7,795 dollars a tonne on the London Metal Exchange, from 8,065 dollars a week earlier.
Three-month aluminium prices recoiled to 2,744 dollars a tonne, from 2,855 dollars.
Three-month nickel prices slid to 30,899 dollars a tonne, from 34,487 dollars.
Three-month lead prices dived to 3,035 dollars a tonne, from 3,440 dollars.
Three-month zinc prices declined to 3,470 dollars a tonne, from 3,651 dollars.
Three-month tin prices dipped only slightly to 15,499 dollars a tonne, from 15,500 dollars.
COCOA: Cocoa prices headed lower as rain fell in west Africa, easing supply concerns.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for September delivery dropped to 1,018 pounds a tonne, from 1,109 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September contract fell to 1,937 dollars a tonne, from 2,103 dollars the previous Friday.
COFFEE: Coffee prices struck the lowest point for almost two months in London and there was also a fall in New York.
By Friday on the LIFFE, Robusta quality for September delivery declined to 1,784 dollars a tonne, from 1,879 dollars one week earlier.
On the NYBOT, Arabica for September delivery slipped to 112.55 US cents a pound, from 114.50 cents.
GRAINS AND SOYA: Wheat prices rose as a result of strong demand, while maize and soya fell.
Wheat for September delivery increased to 6.74 dollars a bushel, from 6.16 dollars.
August-dated soyabean meal-used in animal feed-dropped to 8.19 dollars, from 8.50 dollars.
SUGAR: Sugar prices eased.
By Friday on the LIFFE, the price a tonne of white sugar for October delivery retracted to 310 dollars, from 312.80 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for October delivery dipped to 10.04 US cents a pound, from 10.31 cents a week earlier.
RUBBER: The price of rubber rose slightly as poor weather conditions in Malaysia tightened supply.
On Friday, the Malaysian Rubber Board's benchmark SMR20 increased to 206.45 US cents per kilogramme, from 205.80 US cents the previous week.
Metals benefited early in the week as the dollar fell sharply, especially against the euro which reached an all-time high against the US unit. But gains were largely wiped out by Friday owing to the dollar's recovery.
A strong dollar hurts demand for dollar-denominated commodities, such as metals, because they become more expensive for buyers holding weaker-performing currencies.
OIL: In a turbulent week for the oil market, prices spiked to an 11- month peak in New York amid concern over tight US energy supplies.
The International Energy Agency, which has repeatedly called on OPEC to pump more crude, recently raised its 2008 forecast for oil demand by 2.5 per cent to 88.2 million barrels a day.
On Thursday the New York oil price hit 77.24 dollars per barrel-a level last seen on August 9, 2006 -- as keen global demand and tight supplies fuelled speculative buying. New York's record high of 78.40 dollars was set a year ago.
By Friday, Brent North Sea crude for September delivery dropped to 75.99 dollars a barrel Friday, compared with 77.63 dollars a barrel a week earlier.
New York's main oil futures contract, light sweet crude for delivery in September, gained to 76.11 dollars a barrel, from 75.79 dollars a barrel.
GOLD: Gold prices struck seven week highs.
The precious metal hit 687.40 dollars an ounce Tuesday-the highest point since June 6 as the European single currency reached an historic peak of 1.3852 dollars. But the dollar's recovery towards the end of the week saw gold lose its strong gains.
On the London Bullion Market, gold dropped to 660.50 dollars an ounce at Friday's late fixing, from 681.60 dollars a week earlier.
SILVER: Silver prices mirrored the path taken by sister metal gold, rising to 13.50 dollars an ounce at the start of the week, before slipping back later.
On the London Bullion Market, silver slid to 12.75 dollars an ounce at Friday's late fixing, from 13.29 dollars a week earlier.
PALLADIUM AND PLATINUM: Palladium and platinum prices fell in line with other precious metals.
On the London Platinum and Palladium Market, platinum fell to 1,284 dollars an ounce at the late fixing Friday, from 1,332 dollars a week earlier.
Palladium declined to 362 dollars an ounce, from 370.50 dollars.
BASE METALS: Base metals prices mostly slumped owing to concern that demand for commodities could decline as strains in the US economy spread around the world.
On Friday, the price of copper for delivery in three months decreased to 7,795 dollars a tonne on the London Metal Exchange, from 8,065 dollars a week earlier.
Three-month aluminium prices recoiled to 2,744 dollars a tonne, from 2,855 dollars.
Three-month nickel prices slid to 30,899 dollars a tonne, from 34,487 dollars.
Three-month lead prices dived to 3,035 dollars a tonne, from 3,440 dollars.
Three-month zinc prices declined to 3,470 dollars a tonne, from 3,651 dollars.
Three-month tin prices dipped only slightly to 15,499 dollars a tonne, from 15,500 dollars.
COCOA: Cocoa prices headed lower as rain fell in west Africa, easing supply concerns.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for September delivery dropped to 1,018 pounds a tonne, from 1,109 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September contract fell to 1,937 dollars a tonne, from 2,103 dollars the previous Friday.
COFFEE: Coffee prices struck the lowest point for almost two months in London and there was also a fall in New York.
By Friday on the LIFFE, Robusta quality for September delivery declined to 1,784 dollars a tonne, from 1,879 dollars one week earlier.
On the NYBOT, Arabica for September delivery slipped to 112.55 US cents a pound, from 114.50 cents.
GRAINS AND SOYA: Wheat prices rose as a result of strong demand, while maize and soya fell.
Wheat for September delivery increased to 6.74 dollars a bushel, from 6.16 dollars.
August-dated soyabean meal-used in animal feed-dropped to 8.19 dollars, from 8.50 dollars.
SUGAR: Sugar prices eased.
By Friday on the LIFFE, the price a tonne of white sugar for October delivery retracted to 310 dollars, from 312.80 dollars a week earlier.
On the NYBOT, the price of unrefined sugar for October delivery dipped to 10.04 US cents a pound, from 10.31 cents a week earlier.
RUBBER: The price of rubber rose slightly as poor weather conditions in Malaysia tightened supply.
On Friday, the Malaysian Rubber Board's benchmark SMR20 increased to 206.45 US cents per kilogramme, from 205.80 US cents the previous week.