Oil prices rise as demand woes dent metals
Sunday, 15 March 2009
LONDON, March 14 (AFP): Oil prices rose over the week awaiting OPEC's upcoming meet on output while a downturn in demand weighed on a number of metals, traders said.
Markets were also awaiting the outcome of a meeting of leading finance ministers on Saturday to discuss how best to tackle the economic crisis, amid deep divisions between the United States and European nations, notably France and Germany.
The gathering Saturday of finance chiefs from industrialised and emerging market countries in the Group of 20 will set the stage for a summit of G20 leaders on April 2.
While the United States, the world's biggest economy, wants a coordinated international stimulus, most of Europe is suspicious of such a move and favours tightening regulation of financial markets and institutions.
OIL: Oil prices rose this week as the market eyed further possible cuts to OPEC's output amid tumbling global demand for energy, traders said.
OPEC on Friday expressed its fears about low oil prices, which have tumbled from record heights of above 147 dollars a barrel last July to around a mid-40s-dollar range as a vicious global economic downturn slams demand for energy.
OPEC, which pumps 40 per cent of world crude, agreed late last year on cuts to reduce output by 4.2 million barrels per day.
Despite the cuts, oil prices could continue to fall because of the global economic slump and the erosion of demand, OPEC warned on Friday.
Oil prices had meanwhile rebounded strongly on Thursday as market attention focused firmly on OPEC's weekend meeting.
PRECIOUS METALS: Precious metals prices fell but sentiment remained positive for gold.
By Friday on the London Bullion Market, gold stood at 930.04 dollars an ounce at the late fixing compared to 936 dollars reached a week earlier. Silver dropped to 13.11 dollars an ounce from 13.46 dollars.
On the London Platinum and Palladium Market, platinum slipped to 1,048 dollars an ounce at the late fixing on Friday from 1,071 dollars a week earlier. Palladium slid to 198 dollars an ounce from 202.50 dollars.
BASE METALS: Base metals prices mainly fell after strong gains a week earlier.
"Prices were generally softer... as the market digested Chinese trade data for February, which indicated the effect of the global recession on export demand," Barclays Capital analysts said.
By Friday, copper for delivery in three months fell to 3,690 dollars a tonne on the London Metal Exchange from 3,724 dollars the previous week. Three-month aluminium rose to 1,375 dollars a tonne from 1,338 dollars.
Three-month lead gained to 1,240 dollars a tonne from 1,198 dollars. Three-month tin decreased to 10,452 dollars a tonne from 11,200 dollars. Three-month zinc dropped to 1,225 dollars a tonne from 1,245 dollars. Three-month nickel retreated to 9,455 dollars a tonne from 9,900 dollars.
COCOA: Cocoa prices rebounded as investment funds re-entered the market.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May increased to 1,888 pounds a tonne from 1,804 pounds a week earlier.
On the New York Board of Trade (NYBOT), the May cocoa contract rose to 2,425 dollars a tonne from 2,264 dollars.
COFFEE: Coffee prices rallied. By Friday on LIFFE, Robusta for delivery in May advanced to 1,560 dollars a tonne from 1,506 dollars a week earlier.
On the NYBOT, Arabica for May jumped to 111.30 US cents a pound from 108 cents.
GRAINS AND SOYA: Maize and soya prices rose as the US Department of Agriculture downgraded its forecasts for stockpiles of the pair.
"It was (price) bullish for the soybeans and the corn because the USDA did trim the US stocks," said Allendale analyst Joe Victor.
By Friday on the Chicago Board of Trade, maize for delivery in May jumped to 3.84 dollars a bushel from 3.61 dollars the previous week.
May-dated soyabean meal-used in animal feed-climbed to 8.79 dollars from 8.67 dollars.
Wheat for May fell to 5.23 dollars a bushel from 5.27 dollars.
SUGAR: Sugar prices rebounded. By Friday on LIFFE, the price of a tonne of white sugar for delivery in May grew to 402 pounds from 383 pounds a week earlier.
On NYBOT, the price of unrefined sugar for May gained to 13.20 US cents per pound from 12.90 cents.
RUBBER: Malaysian rubber prices rose on expectations of fresh demand from China, South Korea and Taiwan.
On Friday, the Malaysian Rubber Board's benchmark SMR20 increased to 136.45 US cents per kilogramme from 134.50 cents a week earlier.
Markets were also awaiting the outcome of a meeting of leading finance ministers on Saturday to discuss how best to tackle the economic crisis, amid deep divisions between the United States and European nations, notably France and Germany.
The gathering Saturday of finance chiefs from industrialised and emerging market countries in the Group of 20 will set the stage for a summit of G20 leaders on April 2.
While the United States, the world's biggest economy, wants a coordinated international stimulus, most of Europe is suspicious of such a move and favours tightening regulation of financial markets and institutions.
OIL: Oil prices rose this week as the market eyed further possible cuts to OPEC's output amid tumbling global demand for energy, traders said.
OPEC on Friday expressed its fears about low oil prices, which have tumbled from record heights of above 147 dollars a barrel last July to around a mid-40s-dollar range as a vicious global economic downturn slams demand for energy.
OPEC, which pumps 40 per cent of world crude, agreed late last year on cuts to reduce output by 4.2 million barrels per day.
Despite the cuts, oil prices could continue to fall because of the global economic slump and the erosion of demand, OPEC warned on Friday.
Oil prices had meanwhile rebounded strongly on Thursday as market attention focused firmly on OPEC's weekend meeting.
PRECIOUS METALS: Precious metals prices fell but sentiment remained positive for gold.
By Friday on the London Bullion Market, gold stood at 930.04 dollars an ounce at the late fixing compared to 936 dollars reached a week earlier. Silver dropped to 13.11 dollars an ounce from 13.46 dollars.
On the London Platinum and Palladium Market, platinum slipped to 1,048 dollars an ounce at the late fixing on Friday from 1,071 dollars a week earlier. Palladium slid to 198 dollars an ounce from 202.50 dollars.
BASE METALS: Base metals prices mainly fell after strong gains a week earlier.
"Prices were generally softer... as the market digested Chinese trade data for February, which indicated the effect of the global recession on export demand," Barclays Capital analysts said.
By Friday, copper for delivery in three months fell to 3,690 dollars a tonne on the London Metal Exchange from 3,724 dollars the previous week. Three-month aluminium rose to 1,375 dollars a tonne from 1,338 dollars.
Three-month lead gained to 1,240 dollars a tonne from 1,198 dollars. Three-month tin decreased to 10,452 dollars a tonne from 11,200 dollars. Three-month zinc dropped to 1,225 dollars a tonne from 1,245 dollars. Three-month nickel retreated to 9,455 dollars a tonne from 9,900 dollars.
COCOA: Cocoa prices rebounded as investment funds re-entered the market.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in May increased to 1,888 pounds a tonne from 1,804 pounds a week earlier.
On the New York Board of Trade (NYBOT), the May cocoa contract rose to 2,425 dollars a tonne from 2,264 dollars.
COFFEE: Coffee prices rallied. By Friday on LIFFE, Robusta for delivery in May advanced to 1,560 dollars a tonne from 1,506 dollars a week earlier.
On the NYBOT, Arabica for May jumped to 111.30 US cents a pound from 108 cents.
GRAINS AND SOYA: Maize and soya prices rose as the US Department of Agriculture downgraded its forecasts for stockpiles of the pair.
"It was (price) bullish for the soybeans and the corn because the USDA did trim the US stocks," said Allendale analyst Joe Victor.
By Friday on the Chicago Board of Trade, maize for delivery in May jumped to 3.84 dollars a bushel from 3.61 dollars the previous week.
May-dated soyabean meal-used in animal feed-climbed to 8.79 dollars from 8.67 dollars.
Wheat for May fell to 5.23 dollars a bushel from 5.27 dollars.
SUGAR: Sugar prices rebounded. By Friday on LIFFE, the price of a tonne of white sugar for delivery in May grew to 402 pounds from 383 pounds a week earlier.
On NYBOT, the price of unrefined sugar for May gained to 13.20 US cents per pound from 12.90 cents.
RUBBER: Malaysian rubber prices rose on expectations of fresh demand from China, South Korea and Taiwan.
On Friday, the Malaysian Rubber Board's benchmark SMR20 increased to 136.45 US cents per kilogramme from 134.50 cents a week earlier.