Oil prices climb, but gold loses sparkle
Sunday, 1 March 2009
LONDON, Feb 28 (AFP): Oil prices rallied this week, buoyed by signs of stabilising energy demand and hints of OPEC production cuts, but gold lost its sparkle after breaching 1,000 dollars per ounce the previous week.
OIL: Crude oil fell Monday in tandem with global stock markets amid stubborn fears about weak demand stemming from the worldwide economic downturn.
But prices rebounded Tuesday as the market shook off demand concerns and traders went bargain-hunting.
The market bolted even higher Wednesday and Thursday as the market reacted to news of sliding gasoline or petrol reserves in key energy consumer the United States.
The US Energy Information Administration (EIA) said that American gasoline stocks fell by 3.4 million barrels in the week to February 20. That compared with market expectations for no change.
Oil also rose this week in reaction to indications of output cuts by the Organisation of the Petroleum Exporting Countries (OPEC).
PRECIOUS METALS: The price of gold fell by about five per cent in value, dragging other precious metals lower, as traders took profits from last week's strong run.
Gold had risen last week as high as 1,006 dollars per ounce on the back of its safe-haven status amid tumbling equity markets. That was not far from the record high 1,032.70 dollars hit on March 17 last year.
By Friday on the London Bullion Market, gold fell to 936.50 dollars an ounce at the late fixing from 989 dollars a week earlier. Silver dropped to 13.21 dollars an ounce from 14.28 dollars.
On the London Platinum and Palladium Market, platinum declined to 1,059 dollars an ounce at the late fixing Friday from 1,086 dollars a week earlier. Palladium sank to 195 dollars an ounce from 216 dollars.
BASE METALS: Base metals prices mostly rose after sharp falls the previous week. By Friday, copper for delivery in three months rallied to 3,420 dollars a tonne on the London Metal Exchange from 3,171 dollars the previous week.
Three-month aluminium rose to 1,306 dollars a tonne from 1,301 dollars. Three-month lead firmed to 1,029 dollars a tonne from 1,028 dollars. Three-month tin increased to 10,850 dollars a tonne from 10,501 dollars. Three-month zinc gained to 1,111 dollars a tonne from 1,088 dollars.
COCOA: Cocoa prices enjoyed mixed fortunes. London cocoa had hit a 24- year high of 2,045 pounds a tonne last month on supply concerns. By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May rose to 1,845 pounds a tonne from 1,803 pounds a week earlier.
On the New York Board of Trade (NYBOT), the May cocoa contract sagged to 2,417 dollars a tonne from 2,450 dollars.
COFFEE: Coffee prices steadied in muted trading. By Friday on LIFFE, Robusta for delivery in May slid to 1,551 dollars a tonne from 1,560 dollars a week earlier. On the NYBOT, Arabica for May firmed to 111.75 US cents a pound from 111.05 US cents.
GRAINS AND SOYA: Maize and soya prices rose, winning support from higher oil prices. Maize and soya are used to manufacture ethanol, a cheaper alternative to gasoline or petrol. By Friday on the Chicago Board of Trade, maize for delivery in May rose to 3.64 dollars a bushel from 3.59 dollars the previous week.
May-dated soyabean meal-used in animal feed-eased to 8.61 dollars from 8.63 dollars. Wheat for March dropped to 5.21 dollars a bushel from 5.30 dollars.
SUGAR: Sugar prices continued to advance amid a strong demand picture. By Friday on LIFFE, the price of a tonne of white sugar for delivery in May climbed to 399.90 pounds from 392.50 pounds a week earlier. On NYBOT, the price of unrefined sugar for May rose to 13.78 US cents per pound from 13.10 cents.
RUBBER: Malaysian rubber prices made modest gains, but dealers warned that the outlook remained negative with weak demand plaguing the market.
On Friday, the Malaysian Rubber Board's benchmark SMR20 firmed to 137.00 US cents per kilogram, compared with 135.10 cents last week.
OIL: Crude oil fell Monday in tandem with global stock markets amid stubborn fears about weak demand stemming from the worldwide economic downturn.
But prices rebounded Tuesday as the market shook off demand concerns and traders went bargain-hunting.
The market bolted even higher Wednesday and Thursday as the market reacted to news of sliding gasoline or petrol reserves in key energy consumer the United States.
The US Energy Information Administration (EIA) said that American gasoline stocks fell by 3.4 million barrels in the week to February 20. That compared with market expectations for no change.
Oil also rose this week in reaction to indications of output cuts by the Organisation of the Petroleum Exporting Countries (OPEC).
PRECIOUS METALS: The price of gold fell by about five per cent in value, dragging other precious metals lower, as traders took profits from last week's strong run.
Gold had risen last week as high as 1,006 dollars per ounce on the back of its safe-haven status amid tumbling equity markets. That was not far from the record high 1,032.70 dollars hit on March 17 last year.
By Friday on the London Bullion Market, gold fell to 936.50 dollars an ounce at the late fixing from 989 dollars a week earlier. Silver dropped to 13.21 dollars an ounce from 14.28 dollars.
On the London Platinum and Palladium Market, platinum declined to 1,059 dollars an ounce at the late fixing Friday from 1,086 dollars a week earlier. Palladium sank to 195 dollars an ounce from 216 dollars.
BASE METALS: Base metals prices mostly rose after sharp falls the previous week. By Friday, copper for delivery in three months rallied to 3,420 dollars a tonne on the London Metal Exchange from 3,171 dollars the previous week.
Three-month aluminium rose to 1,306 dollars a tonne from 1,301 dollars. Three-month lead firmed to 1,029 dollars a tonne from 1,028 dollars. Three-month tin increased to 10,850 dollars a tonne from 10,501 dollars. Three-month zinc gained to 1,111 dollars a tonne from 1,088 dollars.
COCOA: Cocoa prices enjoyed mixed fortunes. London cocoa had hit a 24- year high of 2,045 pounds a tonne last month on supply concerns. By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May rose to 1,845 pounds a tonne from 1,803 pounds a week earlier.
On the New York Board of Trade (NYBOT), the May cocoa contract sagged to 2,417 dollars a tonne from 2,450 dollars.
COFFEE: Coffee prices steadied in muted trading. By Friday on LIFFE, Robusta for delivery in May slid to 1,551 dollars a tonne from 1,560 dollars a week earlier. On the NYBOT, Arabica for May firmed to 111.75 US cents a pound from 111.05 US cents.
GRAINS AND SOYA: Maize and soya prices rose, winning support from higher oil prices. Maize and soya are used to manufacture ethanol, a cheaper alternative to gasoline or petrol. By Friday on the Chicago Board of Trade, maize for delivery in May rose to 3.64 dollars a bushel from 3.59 dollars the previous week.
May-dated soyabean meal-used in animal feed-eased to 8.61 dollars from 8.63 dollars. Wheat for March dropped to 5.21 dollars a bushel from 5.30 dollars.
SUGAR: Sugar prices continued to advance amid a strong demand picture. By Friday on LIFFE, the price of a tonne of white sugar for delivery in May climbed to 399.90 pounds from 392.50 pounds a week earlier. On NYBOT, the price of unrefined sugar for May rose to 13.78 US cents per pound from 13.10 cents.
RUBBER: Malaysian rubber prices made modest gains, but dealers warned that the outlook remained negative with weak demand plaguing the market.
On Friday, the Malaysian Rubber Board's benchmark SMR20 firmed to 137.00 US cents per kilogram, compared with 135.10 cents last week.