Oil price closes in on $100 a barrel
Sunday, 4 November 2007
LONDON, Nov 3 (AFP): Crude oil prices broke fresh record highs this week, surging above 96 dollars a barrel for the first time, on worries about tight global energy supplies.
Gold futures soared above 800 dollars an ounce, a feat last achieved in 1980, as the precious metal benefited from a sliding dollar and historically high oil prices.
OIL: The price of oil soared to new dizzy heights after news of tumbling crude reserves in the United States, the world's biggest energy consumer.
The market was also roiled by geopolitical tensions between Turkey and crude producer Iraq.
New York's light sweet crude hit a record high of 96.24 dollars per barrel Thursday. On Friday, Brent North Sea crude struck an historic peak of 91.87 dollars.
"It is clear that the market has 100 dollars a barrel in its sights and this landmark is set to be breached before year end," said Bank of Ireland analyst Paul Harris.
Traders are concerned about tight global energy supplies heading into the northern hemisphere winter.
Crude futures moved sharply higher Wednesday after the US Department of Energy revealed that crude inventories had slumped by 3.9 million barrels in the week ending October 26.
"The dollar has been under considerable pressure because of the weak US economic outlook which has persuaded the Fed to cut rates."
The dollar struck a new all-time low against the euro Friday as technical factors offset positive US jobs data, dealers said.
In European trade, the euro rose to a record 1.4528 dollars.
Oil prices have jumped by about 50 percent over the past year although adjusted for inflation, they remain below levels reached after the 1979 Iranian revolution.
Current prices would have to go just above 100 dollars to reach outright, as well as nominal records, according to economists.
By Friday, New York's main oil futures contract, light sweet crude for delivery in December, shot up to 94.67 dollars a barrel, from 91.10 dollars a week earlier.
PRECIOUS METALS: The price of gold passed 800 dollars an ounce for the first time since 1980.
Gold futures for December touched 800.80 dollars an ounce in New York Wednesday.
Prices have jumped by about a third in value over the past year. The precious metal benefits from a weak US currency as it makes commodities that are priced in dollars cheaper for buyers using stronger units.
Higher oil prices spark inflationary concerns, while gold is regarded as a haven in troubled times.
Gold's all-time record high price stands at 850 dollars an ounce, which was reached on January 21, 1980.
On the London Bullion Market, gold prices gained to 796.50 dollars an ounce at Friday's late fixing, from 779.15 dollars a week earlier.
Silver prices advanced to 14.32 dollars an ounce at Friday's late fixing, from 14.07 dollars.
BASE METALS: Base metals prices were mixed amid worries that demand for commodities such as copper and aluminium will drop owing to cracks in the US economy.
On Friday, the price of copper for delivery in three months fell to 7,465 dollars a tonne on the London Metal Exchange, from 7,870 dollars a week earlier.
Three-month aluminium prices increased to 2,590 dollars a tonne, from 2,534 dollars.
Three-month nickel prices rose to 32,175 dollars a tonne, from 31,800 dollars.
Three-month lead prices eased to 3,690 dollars a tonne, from 3,695 dollars.
Three-month zinc prices declined to 2,740 dollars a tonne, from 2,910 dollars.
Three-month tin prices gained to 16,554 dollars a tonne, from 16,500 dollars.
COCOA: Cocoa prices climbed as the market digested factors ranging from a struggling dollar to crop quality and quantity.
"Dollar weakness is still a major factor on the cocoa markets," Sucden analysts said.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery advanced to 954 pounds a tonne, from 942 pounds a week earlier.
COFFEE: Coffee prices rallied in London owing to tight supplies.
"We are in the midst of a bottleneck situation," Bouvery analyst Bruno Bouvery said.
By Friday on the LIFFE, Robusta quality for January delivery jumped to 1,935 dollars a tonne, compared with 2,066 dollars for the November contract one week earlier.
On the NYBOT, Arabica for December delivery fell to 119.70 US cents a pound, from 120.65 cents.
SUGAR: Sugar prices resumed their fall owing to expectations of large supplies. Losses were limited, however, by soaring crude oil prices.
Sugar cane is used to produce ethanol, a cheaper biofuel alternative to gasoline or petrol.
By Friday on the LIFFE, the price per tonne of white sugar for December delivery dropped to 282.50 pounds, from 288.10 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for March delivery declined to 9.74 US cents a pound, from 10.47 cents.
GRAINS AND SOYA: Maize prices rose owing to record high oil prices. The commodity is used in the production of fuel which is cheaper than crude.
"Next week, we will be following the energy market again," Allendale analyst Joe Victor said.
By Friday on the Chicago Board of Trade, the price of maize for December delivery rose to 3.76 dollars a bushel, from 3.72 dollars a week earlier.
Wheat for December delivery fell to 7.83 dollars a bushel, from 8.00 dollars.
Gold futures soared above 800 dollars an ounce, a feat last achieved in 1980, as the precious metal benefited from a sliding dollar and historically high oil prices.
OIL: The price of oil soared to new dizzy heights after news of tumbling crude reserves in the United States, the world's biggest energy consumer.
The market was also roiled by geopolitical tensions between Turkey and crude producer Iraq.
New York's light sweet crude hit a record high of 96.24 dollars per barrel Thursday. On Friday, Brent North Sea crude struck an historic peak of 91.87 dollars.
"It is clear that the market has 100 dollars a barrel in its sights and this landmark is set to be breached before year end," said Bank of Ireland analyst Paul Harris.
Traders are concerned about tight global energy supplies heading into the northern hemisphere winter.
Crude futures moved sharply higher Wednesday after the US Department of Energy revealed that crude inventories had slumped by 3.9 million barrels in the week ending October 26.
"The dollar has been under considerable pressure because of the weak US economic outlook which has persuaded the Fed to cut rates."
The dollar struck a new all-time low against the euro Friday as technical factors offset positive US jobs data, dealers said.
In European trade, the euro rose to a record 1.4528 dollars.
Oil prices have jumped by about 50 percent over the past year although adjusted for inflation, they remain below levels reached after the 1979 Iranian revolution.
Current prices would have to go just above 100 dollars to reach outright, as well as nominal records, according to economists.
By Friday, New York's main oil futures contract, light sweet crude for delivery in December, shot up to 94.67 dollars a barrel, from 91.10 dollars a week earlier.
PRECIOUS METALS: The price of gold passed 800 dollars an ounce for the first time since 1980.
Gold futures for December touched 800.80 dollars an ounce in New York Wednesday.
Prices have jumped by about a third in value over the past year. The precious metal benefits from a weak US currency as it makes commodities that are priced in dollars cheaper for buyers using stronger units.
Higher oil prices spark inflationary concerns, while gold is regarded as a haven in troubled times.
Gold's all-time record high price stands at 850 dollars an ounce, which was reached on January 21, 1980.
On the London Bullion Market, gold prices gained to 796.50 dollars an ounce at Friday's late fixing, from 779.15 dollars a week earlier.
Silver prices advanced to 14.32 dollars an ounce at Friday's late fixing, from 14.07 dollars.
BASE METALS: Base metals prices were mixed amid worries that demand for commodities such as copper and aluminium will drop owing to cracks in the US economy.
On Friday, the price of copper for delivery in three months fell to 7,465 dollars a tonne on the London Metal Exchange, from 7,870 dollars a week earlier.
Three-month aluminium prices increased to 2,590 dollars a tonne, from 2,534 dollars.
Three-month nickel prices rose to 32,175 dollars a tonne, from 31,800 dollars.
Three-month lead prices eased to 3,690 dollars a tonne, from 3,695 dollars.
Three-month zinc prices declined to 2,740 dollars a tonne, from 2,910 dollars.
Three-month tin prices gained to 16,554 dollars a tonne, from 16,500 dollars.
COCOA: Cocoa prices climbed as the market digested factors ranging from a struggling dollar to crop quality and quantity.
"Dollar weakness is still a major factor on the cocoa markets," Sucden analysts said.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery advanced to 954 pounds a tonne, from 942 pounds a week earlier.
COFFEE: Coffee prices rallied in London owing to tight supplies.
"We are in the midst of a bottleneck situation," Bouvery analyst Bruno Bouvery said.
By Friday on the LIFFE, Robusta quality for January delivery jumped to 1,935 dollars a tonne, compared with 2,066 dollars for the November contract one week earlier.
On the NYBOT, Arabica for December delivery fell to 119.70 US cents a pound, from 120.65 cents.
SUGAR: Sugar prices resumed their fall owing to expectations of large supplies. Losses were limited, however, by soaring crude oil prices.
Sugar cane is used to produce ethanol, a cheaper biofuel alternative to gasoline or petrol.
By Friday on the LIFFE, the price per tonne of white sugar for December delivery dropped to 282.50 pounds, from 288.10 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for March delivery declined to 9.74 US cents a pound, from 10.47 cents.
GRAINS AND SOYA: Maize prices rose owing to record high oil prices. The commodity is used in the production of fuel which is cheaper than crude.
"Next week, we will be following the energy market again," Allendale analyst Joe Victor said.
By Friday on the Chicago Board of Trade, the price of maize for December delivery rose to 3.76 dollars a bushel, from 3.72 dollars a week earlier.
Wheat for December delivery fell to 7.83 dollars a bushel, from 8.00 dollars.