Oil prices dive on hurricane, strong dollar

LONDON, Sept 6 (AFP) Crude oil prices plunged this week as Hurricane Gustav spared US energy facilities in the Gulf of Mexico, traders said. brCommodities futures, notably oil and metals, were also pushed lower by a strong dollar and concerns about falling demand for raw materials amid a global economic slowdown, they added. brOIL Oil prices tumbled by about 10 per cent in value to five- month lows close to 104 dollars early in the week as it appeared that Gustav had spared damage to US refineries and platforms. brThey soon recovered to just under 110 dollars but resumed their fall as the US government decided to release crude stocks from its strategic reserve after Gustav had nevertheless halted energy production in the Gulf of Mexico. brOil prices again fell below 105 dollars Friday on concerns over slowing energy demand and a strong US currency, while the market awaited next week's OPEC meeting on crude output levels. brThe dollar struck a near 11-month high versus the euro Friday on news of slumping industrial output in Germany, Europe's biggest economy, and as the market awaited key US jobs data, traders said. brThe euro fell to 1.4196 dollars in midday London trade-the lowest level since October 24, 2007. It later recovered to above 1.42 dollars after poorly-received US jobs figures. brPRECIOUS METALS Gold slid below 800 dollars an ounce before rebounding back above the psychological level as the dollar took a knock from weak US jobs figures Friday. Silver, platinum and palladium futures all fell in gold's wake. brOn the London Bullion Market, gold dropped to 808.50 dollars per ounce at Friday's late fixing from 833 dollars a week earlier. brSilver decreased to 12.72 dollars per ounce from 13.78 dollars. On the London Platinum and Palladium Market, platinum retreated to 1,387 dollars per ounce at the late fixing Friday from 1,479 dollars. Palladium slipped to 277 dollars per ounce from 302 dollars. brBASE METALS Base metals prices dropped on concerns over weakening demand amid a slowdown to the global economy. They also fell because of strong supplies and as investors prepared to invest in a resurgent dollar. brCopper futures tumbled below 7,000 dollars a tonne Friday for the first time since February. brThree-month aluminium slid to 2,595 dollars per tonne from 2,714 dollars. Three-month lead dropped to 1,936 dollars per tonne from 1,975 dollars. Three-month zinc fell to 1,780 dollars per tonne from 1,812 dollars. Three-month tin slipped to 19,425 dollars per tonne from 20,000 dollars. Three-month nickel declined to 18,600 dollars per tonne from 20,226 dollars. brCOFFEE Coffee prices fell on news of excess supplies. By Friday on LIFFE, London's futures exchange, Robusta for November delivery dropped to 2,212 dollars per tonne from 2,331 dollars a week earlier. brOn the New York Board of Trade (NYBOT), Arabica for December delivery declined to 147 US cents per pound from 148.75 cents. brCOCOA Cocoa prices slid. Dollar strength continued to weigh on values, said Ryan Bennett, an analyst at the Sucden brokerage. By Friday on LIFFE, the price of cocoa for December decreased to 1,544 pounds per tonne from 1,650 pounds a week earlier. On the NYBOT, the December cocoa contract declined to 2,645 dollars per tonne from 2,937 dollars. brSUGAR Sugar prices headed south as oil prices slid. Sugar is used in the production of ethanol, a cheaper alternative to motor fuel which is refined from crude oil. brBy Friday on LIFFE, the price per tonne of white sugar for October delivery retreated to 388.60 pounds from 408 pounds the previous week. On NYBOT, the price of unrefined sugar for October delivery slipped to 12.77 US cents per pound from 13.23 cents. brGRAINS AND SOYA Grains and soya prices dropped as rain fell in the United States, boosting crop growth, dealers said. By Friday on the Chicago Board of Trade, maize for December delivery was down to 5.49 dollars per bushel from 5.85 dollars the previous week. Wheat for December delivery fell to 7.48 dollars per bushel from 8.01 dollars. brRUBBER Malaysian rubber prices fell, while dealers said that lower oil prices would result in cheaper synthetic rubber, which is made using crude. brOn Friday, the Malaysian Rubber Board's benchmark SMR20 slid to 277.60 US cents per kilo from 288.10 US cents per kilo a week ago.