Oil prices slide, metals hurt by stronger dollar
Sunday, 27 July 2008
LONDON, July 26 (AFP): Oil prices fell further this week, leaving them about 20 dollars off record highs, while there were also losses for metals futures.
OIL: Oil prices headed south again amid a drop in fuel demand across the United States, the world's biggest consumer of energy.
Crude futures had risen earlier Friday and Thursday in what traders described as a technical rebound following two days of heavy falls.
Oil prices have shot to a series of record highs this year, partly because of political tensions involving oil-producing nations like Iran, which refuses major powers' demands to halt its disputed nuclear programme.
However prices have tumbled since striking record heights of above 147 dollars on July 11.
Analysts said the US government's latest weekly snapshot on energy inventories had suggested weaker demand for energy.
US gasoline stockpiles rose 2.9 million barrels in the week ending July 18, far outstripping analysts' consensus forecasts for a gain of 200,000 barrels.
Gasoline consumption was also 2.4 per cent lower compared to a year earlier as drivers faced sky-high pump prices of 4.11 dollars a gallon (3.78 litres) during a period when US demand for motor fuel is traditionally at a peak.
PRECIOUS METALS: Precious metals prices reclined as the dollar firmed.
A stronger US currency weighs on demand for dollar-priced goods because they become more expensive for buyers holding weaker currencies.
Gold was also affected by sliding oil prices. The precious metal is seen as a haven especially in times of high inflation, which is fuelled by soaring energy prices.
On the London Bullion Market, gold fell to 920.50 dollars per ounce at Friday's late fixing from 959.75 dollars a week earlier.
Silver dropped to 17.55 dollars per ounce from 18.55 dollars.
On the London Platinum and Palladium Market, platinum decreased to 1,726 dollars per ounce at the late fixing on Friday from 1,849 dollars. Palladium slipped to 383 dollars per ounce from 419 dollars.
BASE METALS: Base metals prices mostly dropped. By Friday, copper for delivery in three months fell to 7,930 dollars per tonne on the London Metal Exchange from 8,078 dollars a week earlier. Three-month aluminium dropped to 2,957 dollars per tonne from 3,040 dollars.
Three-month lead rose to 2,123 dollars per tonne from 1,965 dollars. Three-month zinc edged up to 1,825 dollars per tonne from 1,806 dollars. Three-month tin decreased to 22,449 dollars per tonne from 23,400 dollars. Three-month nickel declined to 18,299 dollars per tonne from 20,300 dollars.
GRAINS AND SOYA: Grains and soya prices sank for a third week running.
Lower crude prices tend to weaken prices of maize and soya, which are used to produce ethanol, a cheaper alternative to motor fuel.
By Friday on the Chicago Board of Trade, maize for September delivery slid to 5.73 dollars per bushel from 6.29 dollars the previous week.
August-dated soyabean meal-used in animal feed-sank to 13.82 dollars from 15.15 dollars.
Wheat for August delivery was down at 7.95 dollars per bushel from 8.10 dollars.
COFFEE: Coffee prices dropped. By Friday on LIFFE, Robusta for September delivery eased to 2,330 dollars per tonne from 2,373 dollars a week earlier. On the NYBOT, Arabica for September delivery retreated to 135.90 US cents per pound from 137.50 cents.
COCOA: Cocoa prices steadied in London and New York. By Friday on LIFFE, London's futures exchange, the price of cocoa for September delivery rose to 1,482 pounds per tonne from 1,446 pounds a week earlier. On the New York Board of Trade (NYBOT), the September cocoa contract dipped to 2,762 dollars per tonne from 2,807 dollars.
SUGAR: Sugar prices slid for a second week running. By Friday on LIFFE, the price per tonne of white sugar for October delivery fell to 355.90 pounds from 359 pounds the previous week. On NYBOT, the price of unrefined sugar for October delivery dropped to 12.30 US cents per pound from 12.53 cents.
RUBBER: Malaysian rubber prices declined further. On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 311.40 US cents per kilogramme from 316.05 US cents a week ago.
OIL: Oil prices headed south again amid a drop in fuel demand across the United States, the world's biggest consumer of energy.
Crude futures had risen earlier Friday and Thursday in what traders described as a technical rebound following two days of heavy falls.
Oil prices have shot to a series of record highs this year, partly because of political tensions involving oil-producing nations like Iran, which refuses major powers' demands to halt its disputed nuclear programme.
However prices have tumbled since striking record heights of above 147 dollars on July 11.
Analysts said the US government's latest weekly snapshot on energy inventories had suggested weaker demand for energy.
US gasoline stockpiles rose 2.9 million barrels in the week ending July 18, far outstripping analysts' consensus forecasts for a gain of 200,000 barrels.
Gasoline consumption was also 2.4 per cent lower compared to a year earlier as drivers faced sky-high pump prices of 4.11 dollars a gallon (3.78 litres) during a period when US demand for motor fuel is traditionally at a peak.
PRECIOUS METALS: Precious metals prices reclined as the dollar firmed.
A stronger US currency weighs on demand for dollar-priced goods because they become more expensive for buyers holding weaker currencies.
Gold was also affected by sliding oil prices. The precious metal is seen as a haven especially in times of high inflation, which is fuelled by soaring energy prices.
On the London Bullion Market, gold fell to 920.50 dollars per ounce at Friday's late fixing from 959.75 dollars a week earlier.
Silver dropped to 17.55 dollars per ounce from 18.55 dollars.
On the London Platinum and Palladium Market, platinum decreased to 1,726 dollars per ounce at the late fixing on Friday from 1,849 dollars. Palladium slipped to 383 dollars per ounce from 419 dollars.
BASE METALS: Base metals prices mostly dropped. By Friday, copper for delivery in three months fell to 7,930 dollars per tonne on the London Metal Exchange from 8,078 dollars a week earlier. Three-month aluminium dropped to 2,957 dollars per tonne from 3,040 dollars.
Three-month lead rose to 2,123 dollars per tonne from 1,965 dollars. Three-month zinc edged up to 1,825 dollars per tonne from 1,806 dollars. Three-month tin decreased to 22,449 dollars per tonne from 23,400 dollars. Three-month nickel declined to 18,299 dollars per tonne from 20,300 dollars.
GRAINS AND SOYA: Grains and soya prices sank for a third week running.
Lower crude prices tend to weaken prices of maize and soya, which are used to produce ethanol, a cheaper alternative to motor fuel.
By Friday on the Chicago Board of Trade, maize for September delivery slid to 5.73 dollars per bushel from 6.29 dollars the previous week.
August-dated soyabean meal-used in animal feed-sank to 13.82 dollars from 15.15 dollars.
Wheat for August delivery was down at 7.95 dollars per bushel from 8.10 dollars.
COFFEE: Coffee prices dropped. By Friday on LIFFE, Robusta for September delivery eased to 2,330 dollars per tonne from 2,373 dollars a week earlier. On the NYBOT, Arabica for September delivery retreated to 135.90 US cents per pound from 137.50 cents.
COCOA: Cocoa prices steadied in London and New York. By Friday on LIFFE, London's futures exchange, the price of cocoa for September delivery rose to 1,482 pounds per tonne from 1,446 pounds a week earlier. On the New York Board of Trade (NYBOT), the September cocoa contract dipped to 2,762 dollars per tonne from 2,807 dollars.
SUGAR: Sugar prices slid for a second week running. By Friday on LIFFE, the price per tonne of white sugar for October delivery fell to 355.90 pounds from 359 pounds the previous week. On NYBOT, the price of unrefined sugar for October delivery dropped to 12.30 US cents per pound from 12.53 cents.
RUBBER: Malaysian rubber prices declined further. On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 311.40 US cents per kilogramme from 316.05 US cents a week ago.