Oil jumps, base metals hit fresh lows
Sunday, 14 December 2008
LONDON, Dec 13 (AFP): Oil prices rebound while aluminium and copper futures hit fresh multi-year lows in a week of volatile trading for commodities.
OIL: Oil prices rallied sharply as Russia said it would join OPEC in likely cutting crude production.
The Organisation of Petroleum Exporting Countries (OPEC) is widely expected to announce a cut in production at a meeting in Algeria Wednesday in a bid to bolster prices that have plunged from record highs above 147 dollars in July.
OPEC, which pumps 40 per cent of world crude, has called on non-members to play a role in reducing output to stem the sharp slide in crude prices of the last five months.
Russia Thursday appeared to heed the calls, saying it was ready to join forces with OPEC to stem the plunge in prices and could even become part of the oil cartel if membership were in Moscow's interests.
Also on Thursday, the International Energy Agency's (IEA) forecast that global oil demand would fall this year for the first time since 1983 owing to a worldwide economic slowdown.
Oil prices had a week ago plunged below 40 dollars to their lowest levels in nearly four years as worse-than-expected jobs data in the United States (US) raised the prospect of severe falls in energy demand.
Prices began 2008 by vaulting above 100 dollars for the first time, lifted by strong energy demand from emerging economic powers China and India and by political unrest in major crude exporters Iran and Nigeria.
By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in January jumped to 44.51 dollars from 42.32 dollars.
On London's InterContinental Exchange (ICE), Brent North Sea crude for January rallied to 44.49 dollars from 40.06 dollars a week earlier.
PRECIOUS METALS: The prices of gold, silver, platinum and palladium rebounded as the dollar weakened.
On the London Bullion Market, gold rose to 826.50 dollars an ounce at Friday's late fixing from 749 dollars a week earlier.
Silver increased to 10.07 dollars an ounce from 9.46 dollars.
On the London Platinum and Palladium Market, platinum gained to 801 dollars an ounce at the late fixing Friday from 788 dollars a week earlier.
Palladium climbed to 172 dollars an ounce from 164 dollars.
BASE METALS: Base metals prices ended the week mixed after copper and aluminium struck fresh multi-year lows amid faltering demand for raw materials.
Copper Friday dropped under 3,000 dollars a tonne to 2,981 -- the lowest level since May 2005. It later recovered to finish the week higher as bargain hunters swept up cheap deals.
Also on Friday, aluminium struck a five-year low of 1,465 dollars a tonne.
The US Treasury said Friday it is ready to avert the collapse of the Big Three US automakers until Congress can address their problems.
A 14-billion-dollar auto bailout effort collapsed in the US Senate late Thursday.
By Friday, copper for delivery in three months rose to 3,150 dollars a tonne on the London Metal Exchange from 3,025 dollars a week earlier.
Three-month aluminium dipped to 1,511 dollars a tonne from 1,513 dollars.
Three-month lead increased to 980 dollars a tonne from 928 dollars.
Three-month zinc eased to 1,060 dollars a tonne from 1,080 dollars.
Three-month tin gained to 11,501 dollars a tonne from 11,475 dollars.
Three-month nickel climbed to 10,208 dollars a tonne from 9,100 dollars.
COCOA: Cocoa futures rallied.
"Prices are being supported once more by dollar weakness," said Sucden analyst Stephanie Garner.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in March jumped to 1,620 pounds a tonne from 1,488 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract increased to 2,380 dollars a tonne from 2,146 dollars.
COFFEE: Coffee prices rebounded.
By Friday on LIFFE, Robusta for delivery in March surged to 1,900 dollars a tonne from 1,558 dollars a week earlier.
On the NYBOT, Arabica for March climbed to 112 US cents a pound from 102.45 cents.
SUGAR: Sugar prices rebounded back above 300 pounds a tonne in London.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March recovered to 319.40 pounds from 294.50 pounds the previous week.
On NYBOT, the price of unrefined sugar for March grew to 11.72 US cents per pound from 10.55 cents.
GRAINS AND SOYA: Grains and soya prices rebounded. By Friday on the Chicago Board of Trade, maize for delivery in March jumped to 3.47 dollars a bushel from 3.09 dollars the previous week.
March-dated soyabean meal -- used in animal feed -- advanced to 8.40 dollars from 7.87 dollars. Wheat for March increased to 4.96 dollars a bushel from 4.76 dollars.
RUBBER: Malaysian rubber prices fell owing to a lack of demand, dealers said.
On Friday, the Malaysian Rubber Board's benchmark SMR20 slumped to 111.75 US cents per kilo from 153.25 US cents per kilo a week ago.
OIL: Oil prices rallied sharply as Russia said it would join OPEC in likely cutting crude production.
The Organisation of Petroleum Exporting Countries (OPEC) is widely expected to announce a cut in production at a meeting in Algeria Wednesday in a bid to bolster prices that have plunged from record highs above 147 dollars in July.
OPEC, which pumps 40 per cent of world crude, has called on non-members to play a role in reducing output to stem the sharp slide in crude prices of the last five months.
Russia Thursday appeared to heed the calls, saying it was ready to join forces with OPEC to stem the plunge in prices and could even become part of the oil cartel if membership were in Moscow's interests.
Also on Thursday, the International Energy Agency's (IEA) forecast that global oil demand would fall this year for the first time since 1983 owing to a worldwide economic slowdown.
Oil prices had a week ago plunged below 40 dollars to their lowest levels in nearly four years as worse-than-expected jobs data in the United States (US) raised the prospect of severe falls in energy demand.
Prices began 2008 by vaulting above 100 dollars for the first time, lifted by strong energy demand from emerging economic powers China and India and by political unrest in major crude exporters Iran and Nigeria.
By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in January jumped to 44.51 dollars from 42.32 dollars.
On London's InterContinental Exchange (ICE), Brent North Sea crude for January rallied to 44.49 dollars from 40.06 dollars a week earlier.
PRECIOUS METALS: The prices of gold, silver, platinum and palladium rebounded as the dollar weakened.
On the London Bullion Market, gold rose to 826.50 dollars an ounce at Friday's late fixing from 749 dollars a week earlier.
Silver increased to 10.07 dollars an ounce from 9.46 dollars.
On the London Platinum and Palladium Market, platinum gained to 801 dollars an ounce at the late fixing Friday from 788 dollars a week earlier.
Palladium climbed to 172 dollars an ounce from 164 dollars.
BASE METALS: Base metals prices ended the week mixed after copper and aluminium struck fresh multi-year lows amid faltering demand for raw materials.
Copper Friday dropped under 3,000 dollars a tonne to 2,981 -- the lowest level since May 2005. It later recovered to finish the week higher as bargain hunters swept up cheap deals.
Also on Friday, aluminium struck a five-year low of 1,465 dollars a tonne.
The US Treasury said Friday it is ready to avert the collapse of the Big Three US automakers until Congress can address their problems.
A 14-billion-dollar auto bailout effort collapsed in the US Senate late Thursday.
By Friday, copper for delivery in three months rose to 3,150 dollars a tonne on the London Metal Exchange from 3,025 dollars a week earlier.
Three-month aluminium dipped to 1,511 dollars a tonne from 1,513 dollars.
Three-month lead increased to 980 dollars a tonne from 928 dollars.
Three-month zinc eased to 1,060 dollars a tonne from 1,080 dollars.
Three-month tin gained to 11,501 dollars a tonne from 11,475 dollars.
Three-month nickel climbed to 10,208 dollars a tonne from 9,100 dollars.
COCOA: Cocoa futures rallied.
"Prices are being supported once more by dollar weakness," said Sucden analyst Stephanie Garner.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in March jumped to 1,620 pounds a tonne from 1,488 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract increased to 2,380 dollars a tonne from 2,146 dollars.
COFFEE: Coffee prices rebounded.
By Friday on LIFFE, Robusta for delivery in March surged to 1,900 dollars a tonne from 1,558 dollars a week earlier.
On the NYBOT, Arabica for March climbed to 112 US cents a pound from 102.45 cents.
SUGAR: Sugar prices rebounded back above 300 pounds a tonne in London.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March recovered to 319.40 pounds from 294.50 pounds the previous week.
On NYBOT, the price of unrefined sugar for March grew to 11.72 US cents per pound from 10.55 cents.
GRAINS AND SOYA: Grains and soya prices rebounded. By Friday on the Chicago Board of Trade, maize for delivery in March jumped to 3.47 dollars a bushel from 3.09 dollars the previous week.
March-dated soyabean meal -- used in animal feed -- advanced to 8.40 dollars from 7.87 dollars. Wheat for March increased to 4.96 dollars a bushel from 4.76 dollars.
RUBBER: Malaysian rubber prices fell owing to a lack of demand, dealers said.
On Friday, the Malaysian Rubber Board's benchmark SMR20 slumped to 111.75 US cents per kilo from 153.25 US cents per kilo a week ago.