Oil prices flirt with 100 dollar-landmark
Sunday, 11 November 2007
LONDON, Nov 10 (AFP): Crude oil prices struck new historic heights this week, surging above 98 dollars a barrel for the first time, on fears of tight energy supplies in the United States, the world's biggest energy user.
Gold futures came extremely close to beating its all-time record of 850 dollars an ounce as it won support from the dollar's record run lower against the euro and surging oil prices.
OIL: New York's main contract, light sweet crude for December delivery, hit an historic peak of 98.62 dollars a barrel Wednesday on expectations that the US government would announce a large drop in American energy inventories.
In London the same day, Brent North Sea crude for December delivery struck an all-time high of 95.19 dollars.
Elsewhere this week, Brazil said it had discovered huge petroleum reserves in its south that could turn the country into one of the biggest oil producers in the world.
By Friday, New York's main oil futures contract, light sweet crude for delivery in December, jumped to 95.93 dollars a barrel, from 94.67 dollars a week earlier.
In London, Brent North Sea crude for December delivery advanced to 92.83 dollars a barrel, from 90.75 dollars.
PRECIOUS METALS: The price of gold reached 845.84 dollars an ounce Wednesday to reach the highest level since 1980 and within touching distance of its all-time peak of 850 dollars.
A struggling US unit makes commodities priced in dollars cheaper for buyers using stronger currencies.
On Friday, the euro raced to an all-time high of 1.4752 dollars.
On the London Bullion Market, gold prices soared to 831.50 dollars an ounce at Friday's late fixing, from 796.50 dollars a week earlier.
Silver prices grew to 15.15 dollars an ounce, from 14.32 dollars.
BASE METALS: Base metals prices were mixed, with copper especially hit by woes for the US economy, which could dent demand for commodities.
"Overall the metals have had difficulty running higher on the back of gold and oil which suggests traders are more concerned about the prospects of a slowing US economy and its impact on world growth than on any advantage the weaker dollar would bring them," said William Adams, an analyst at BaseMetals.com.
On Friday, the price of copper for delivery in three months fell to 7,077 dollars a tonne on the London Metal Exchange, from 7,465 dollars a week earlier.
Three-month aluminium prices rose to 2,610 dollars a tonne, from 2,590 dollars.
Three-month nickel prices increased to 32,349 dollars a tonne, from 32,175 dollars.
COCOA: Cocoa prices fell, but losses were limited in New York owing to a weak dollar.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery slid to 925 pounds a tonne, from 954 pounds a week earlier.
On the New York Board of Trade (NYBOT), the December cocoa contract decreased to 1,935 dollars a tonne, from 1,966 dollars.
COFFEE: Coffee prices were mixed as markets tracked weather conditions in producer Vietnam and the performance of other commodities.
By Friday on the LIFFE, Robusta quality for January delivery dropped to 1,911 dollars a tonne, compared with 1,935 dollars a week earlier.
SUGAR: Sugar prices rebounded, helped by record-breaking 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 gained to 285.60 pounds, from 282.50 pounds a week earlier.
GRAINS AND SOYA: Maize and soya prices rose on the back of soaring oil prices, while wheat fell on profit-taking.
Demand for maize and soya rose, lifting prices, as the commodities are used in the production of biofuels which are cheaper than crude.
By Friday on the Chicago Board of Trade, the price of maize for December delivery climbed to 3.84 dollars a bushel, from 3.76 dollars a week earlier.
Wheat for December delivery decreased to 7.47 dollars a bushel, from 7.83 dollars.
January-dated soyabean meal-used in animal feed-jumped to 10.23 dollars, from 10.17 dollars.
On the LIFFE, the price per tonne of wheat for May delivery dropped to 158.25 pounds, from 162.00.
RUBBER: The price of rubber rose strongly as monsoon rains swamped producer countries in Asia, dampening supplies.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 244.00 US cents per kilogramme, from 236.85 cents last week. WOOL: The Australian wool market finished 0.9-per cent higher on average, helped by buying from China and Italy, the Australian Wool Industries Secretariat said.
Gold futures came extremely close to beating its all-time record of 850 dollars an ounce as it won support from the dollar's record run lower against the euro and surging oil prices.
OIL: New York's main contract, light sweet crude for December delivery, hit an historic peak of 98.62 dollars a barrel Wednesday on expectations that the US government would announce a large drop in American energy inventories.
In London the same day, Brent North Sea crude for December delivery struck an all-time high of 95.19 dollars.
Elsewhere this week, Brazil said it had discovered huge petroleum reserves in its south that could turn the country into one of the biggest oil producers in the world.
By Friday, New York's main oil futures contract, light sweet crude for delivery in December, jumped to 95.93 dollars a barrel, from 94.67 dollars a week earlier.
In London, Brent North Sea crude for December delivery advanced to 92.83 dollars a barrel, from 90.75 dollars.
PRECIOUS METALS: The price of gold reached 845.84 dollars an ounce Wednesday to reach the highest level since 1980 and within touching distance of its all-time peak of 850 dollars.
A struggling US unit makes commodities priced in dollars cheaper for buyers using stronger currencies.
On Friday, the euro raced to an all-time high of 1.4752 dollars.
On the London Bullion Market, gold prices soared to 831.50 dollars an ounce at Friday's late fixing, from 796.50 dollars a week earlier.
Silver prices grew to 15.15 dollars an ounce, from 14.32 dollars.
BASE METALS: Base metals prices were mixed, with copper especially hit by woes for the US economy, which could dent demand for commodities.
"Overall the metals have had difficulty running higher on the back of gold and oil which suggests traders are more concerned about the prospects of a slowing US economy and its impact on world growth than on any advantage the weaker dollar would bring them," said William Adams, an analyst at BaseMetals.com.
On Friday, the price of copper for delivery in three months fell to 7,077 dollars a tonne on the London Metal Exchange, from 7,465 dollars a week earlier.
Three-month aluminium prices rose to 2,610 dollars a tonne, from 2,590 dollars.
Three-month nickel prices increased to 32,349 dollars a tonne, from 32,175 dollars.
COCOA: Cocoa prices fell, but losses were limited in New York owing to a weak dollar.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery slid to 925 pounds a tonne, from 954 pounds a week earlier.
On the New York Board of Trade (NYBOT), the December cocoa contract decreased to 1,935 dollars a tonne, from 1,966 dollars.
COFFEE: Coffee prices were mixed as markets tracked weather conditions in producer Vietnam and the performance of other commodities.
By Friday on the LIFFE, Robusta quality for January delivery dropped to 1,911 dollars a tonne, compared with 1,935 dollars a week earlier.
SUGAR: Sugar prices rebounded, helped by record-breaking 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 gained to 285.60 pounds, from 282.50 pounds a week earlier.
GRAINS AND SOYA: Maize and soya prices rose on the back of soaring oil prices, while wheat fell on profit-taking.
Demand for maize and soya rose, lifting prices, as the commodities are used in the production of biofuels which are cheaper than crude.
By Friday on the Chicago Board of Trade, the price of maize for December delivery climbed to 3.84 dollars a bushel, from 3.76 dollars a week earlier.
Wheat for December delivery decreased to 7.47 dollars a bushel, from 7.83 dollars.
January-dated soyabean meal-used in animal feed-jumped to 10.23 dollars, from 10.17 dollars.
On the LIFFE, the price per tonne of wheat for May delivery dropped to 158.25 pounds, from 162.00.
RUBBER: The price of rubber rose strongly as monsoon rains swamped producer countries in Asia, dampening supplies.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 244.00 US cents per kilogramme, from 236.85 cents last week. WOOL: The Australian wool market finished 0.9-per cent higher on average, helped by buying from China and Italy, the Australian Wool Industries Secretariat said.