Oil prices slide further from record heights
Monday, 8 October 2007
LONDON, Oct 7 (AFP): World oil prices fell further from historic highs this week amid news of rising crude reserves in the United States, which is the biggest global energy consumer.
Oil and other dollar-denominated commodities were buoyed by a weak US dollar, which makes them cheaper for buyers using stronger currencies.
A spirited rally Friday by the US dollar, which followed a strong report on US job creation in September, fizzled out as the news was not enough to sustain investor confidence in the US unit.
OIL: The price of Brent crude oil dropped from its record high of 81.05 dollars per barrel this week, but remained supported by tight energy supplies ahead of the northern hemisphere winter, when demand for heating fuel peaks.
PRECIOUS METALS: Gold prices surged to the highest level for 27 years as the sliding US dollar boosted the precious metal.
On the London Bullion Market, gold prices leapt as high as 747.90 dollars an ounce-which was last seen in January 1980 -- before paring its gains.
Gold has also found support from recent record crude oil prices, which have raised fears about rising inflation. Gold is regarded as a store of value and a hedge against inflation.
COCOA: Cocoa prices suffered heavy losses, plunging by 4.0 percent in London and almost 9.0 percent in New York as speculators took profits after a recent strong run.
Two weeks ago, prices had soared to two-month peaks on concerns over tight supplies in leading producer Ivory Coast.
COFFEE: Coffee prices were mixed in subdued trading conditions.
By Friday on the LIFFE, Robusta quality for November delivery decreased to 1,904 dollars a tonne, from 1,910 dollars one week earlier.
SUGAR: Sugar prices turned sour, falling in both London and New York.
Meanwhile, India is on course to overtake Brazil as the world's biggest sugar producer in 2007/2008, the International Sugar Organization said earlier this year.
GRAINS AND SOYA: The prices of grains and soya pulled back after a record-breaking week that saw wheat hit a record close of 9.52 dollars per bushel in Chicago Monday.
With bad weather damaging harvests in several countries, wheat prices have nearly doubled since January, surging past 9.0 dollars per bushel, while soybeans reached a record 10.0 dollars last week.
RUBBER: Rubber prices were flat, with traders mainly sidelined as China, the world's largest buyer, was closed for a week-long holiday.
Traders said that concerns over tight supplies supported the market.
By Friday, the Malaysian Rubber Board's benchmark SMR20 was at 216.70 US cents per kilo, unchanged from the previous week.
WOOL: Prices rose in major producer Australia.
"It was a good market, particularly among the fine wools," the Australian Wool Industry Secretariat said, adding that strong demand came from China and Europe.
The Australian wool market finished the week 0.8 percent higher on average, with the Eastern Index gaining 7 cents to close at 9.26 dollars a kilo.
Oil and other dollar-denominated commodities were buoyed by a weak US dollar, which makes them cheaper for buyers using stronger currencies.
A spirited rally Friday by the US dollar, which followed a strong report on US job creation in September, fizzled out as the news was not enough to sustain investor confidence in the US unit.
OIL: The price of Brent crude oil dropped from its record high of 81.05 dollars per barrel this week, but remained supported by tight energy supplies ahead of the northern hemisphere winter, when demand for heating fuel peaks.
PRECIOUS METALS: Gold prices surged to the highest level for 27 years as the sliding US dollar boosted the precious metal.
On the London Bullion Market, gold prices leapt as high as 747.90 dollars an ounce-which was last seen in January 1980 -- before paring its gains.
Gold has also found support from recent record crude oil prices, which have raised fears about rising inflation. Gold is regarded as a store of value and a hedge against inflation.
COCOA: Cocoa prices suffered heavy losses, plunging by 4.0 percent in London and almost 9.0 percent in New York as speculators took profits after a recent strong run.
Two weeks ago, prices had soared to two-month peaks on concerns over tight supplies in leading producer Ivory Coast.
COFFEE: Coffee prices were mixed in subdued trading conditions.
By Friday on the LIFFE, Robusta quality for November delivery decreased to 1,904 dollars a tonne, from 1,910 dollars one week earlier.
SUGAR: Sugar prices turned sour, falling in both London and New York.
Meanwhile, India is on course to overtake Brazil as the world's biggest sugar producer in 2007/2008, the International Sugar Organization said earlier this year.
GRAINS AND SOYA: The prices of grains and soya pulled back after a record-breaking week that saw wheat hit a record close of 9.52 dollars per bushel in Chicago Monday.
With bad weather damaging harvests in several countries, wheat prices have nearly doubled since January, surging past 9.0 dollars per bushel, while soybeans reached a record 10.0 dollars last week.
RUBBER: Rubber prices were flat, with traders mainly sidelined as China, the world's largest buyer, was closed for a week-long holiday.
Traders said that concerns over tight supplies supported the market.
By Friday, the Malaysian Rubber Board's benchmark SMR20 was at 216.70 US cents per kilo, unchanged from the previous week.
WOOL: Prices rose in major producer Australia.
"It was a good market, particularly among the fine wools," the Australian Wool Industry Secretariat said, adding that strong demand came from China and Europe.
The Australian wool market finished the week 0.8 percent higher on average, with the Eastern Index gaining 7 cents to close at 9.26 dollars a kilo.