Oil prices spike as Iran nuclear row returns to haunt market
Sunday, 3 August 2008
LONDON, Aug 2 (AFP): World oil prices faced a rollercoaster ride this week, tumbling on US demand concerns before rocketing higher on resurgent fears about the Iranian nuclear energy crisis, traders said.
Some commodities fell in value as poor US economic growth data reignited concerns about slowing demand for raw materials from the world's biggest economy.
OIL: Oil prices stormed higher Friday after Washington set the weekend as a deadline for key crude producer Iran to reply to an international offer of incentives for a freeze in its nuclear drive.
"We expect a response this weekend," Gonzalo Gallegos, a State Department spokesman, told AFP without specifying Saturday or Sunday.
In reaction, New York crude leapt as high as 128.60 dollars per barrel and London Brent oil soared as high as 127.94.
Iran is the world's fourth-largest crude oil producer and tension over its nuclear program helped push crude prices to record highs above 147 dollars a barrel on July 11.
Oil prices had tumbled on Thursday and earlier Friday after weaker-than- expected US growth figures stoked fresh worries about the outlook for global energy demand.
Oil prices began the week higher, rallying on Monday after militants attacked a Royal Dutch Shell pipeline in Nigeria, leading the Anglo-Dutch energy giant to reduce output.
The market reversed direction on Tuesday after a report that US gasoline consumption fell last week for the 14th week in a row, according to credit card firm Mastercard.
But prices rebounded by more than four dollars Wednesday on news of an unexpectedly sharp decline in US motor fuel stockpiles.
By Friday, New York's main oil futures contract, light sweet crude for September delivery rose sharply to 126.76 dollars a barrel, from 124 dollars a week earlier.
Brent North Sea crude for September climbed to 126.20 dollars from 125.02 dollars.
PRECIOUS METALS: Precious metals prices were held back by the strengthening US currency, which weighs on demand for dollar- priced goods because they become more expensive for buyers holding weaker currencies.
On the London Bullion Market, gold fell to 912.50 dollars per ounce at Friday's late fixing from 920.50 dollars a week earlier.
Silver firmed to 17.59 dollars per ounce from 17.55 dollars.
On the London Platinum and Palladium Market, platinum decreased to 1,675 dollars per ounce at the late fixing on Friday from 1,726 dollars. Palladium slipped to 367 dollars per ounce from 383 dollars.
BASE METALS: Base metals prices were mixed in subdued trade. "Poor economic data reminded the market of the weak underlying demand side fundamentals that might be signalling the end of the commodity boom," said BaseMetals analyst William Adams.
"Overall the metals seem relatively directionless, which given the summer slowdown is not too surprising, but choppy trading is likely to remain in force."
By Friday, copper for delivery in three months eased to 7,924 dollars per tonne on the London Metal Exchange from 7,930 dollars a week earlier.
Three-month aluminium dropped to 2,929 dollars per tonne from 2,957 dollars.
Three-month lead rose to 2,150 dollars per tonne from 2,123 dollars. Three-month zinc edged up to 1,850 dollars per tonne from 1,825 dollars. Three-month tin decreased to 21,525 dollars per tonne from 22,449 dollars. Three-month nickel rose to 18,750 dollars per tonne from 18,299 dollars.
GRAINS AND SOYA: Grains and soya prices edged higher. By Friday on the Chicago Board of Trade, maize for September delivery increased to 5.87 dollars per bushel from 5.77 dollars the previous week.
November-dated soyabean meal-used in animal feed-firmed to 13.98 dollars from 13.86 dollars.
Wheat for August delivery was up at 8.00 dollars per bushel from 7.95 dollars.
COFFEE: Coffee prices rose. By Friday on LIFFE, Robusta for September delivery leapt to 2,417 dollars per tonne from 2,330 dollars a week earlier. On the NYBOT, Arabica for September delivery rallied to 138.85 US cents per pound from 135.90 cents.
COCOA: Cocoa prices increased in London and New York. By Friday on LIFFE, London's futures exchange, the price of cocoa for September delivery rose to 1,592 pounds per tonne from 1,482 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September cocoa contract gained to 2,965 dollars per tonne from 2,762 dollars.
SUGAR: Sugar prices gained ground. By Friday on LIFFE, the price per tonne of white sugar for October delivery jumped to 398 pounds from 355.90 pounds the previous week. On NYBOT, the price of unrefined sugar for October delivery rose to 14.11 US cents per pound from 12.30 cents.
RUBBER: Malaysian rubber prices fell further. On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 309.60 US cents per kilogramme from 311.40 US cents a week ago.
Some commodities fell in value as poor US economic growth data reignited concerns about slowing demand for raw materials from the world's biggest economy.
OIL: Oil prices stormed higher Friday after Washington set the weekend as a deadline for key crude producer Iran to reply to an international offer of incentives for a freeze in its nuclear drive.
"We expect a response this weekend," Gonzalo Gallegos, a State Department spokesman, told AFP without specifying Saturday or Sunday.
In reaction, New York crude leapt as high as 128.60 dollars per barrel and London Brent oil soared as high as 127.94.
Iran is the world's fourth-largest crude oil producer and tension over its nuclear program helped push crude prices to record highs above 147 dollars a barrel on July 11.
Oil prices had tumbled on Thursday and earlier Friday after weaker-than- expected US growth figures stoked fresh worries about the outlook for global energy demand.
Oil prices began the week higher, rallying on Monday after militants attacked a Royal Dutch Shell pipeline in Nigeria, leading the Anglo-Dutch energy giant to reduce output.
The market reversed direction on Tuesday after a report that US gasoline consumption fell last week for the 14th week in a row, according to credit card firm Mastercard.
But prices rebounded by more than four dollars Wednesday on news of an unexpectedly sharp decline in US motor fuel stockpiles.
By Friday, New York's main oil futures contract, light sweet crude for September delivery rose sharply to 126.76 dollars a barrel, from 124 dollars a week earlier.
Brent North Sea crude for September climbed to 126.20 dollars from 125.02 dollars.
PRECIOUS METALS: Precious metals prices were held back by the strengthening US currency, which weighs on demand for dollar- priced goods because they become more expensive for buyers holding weaker currencies.
On the London Bullion Market, gold fell to 912.50 dollars per ounce at Friday's late fixing from 920.50 dollars a week earlier.
Silver firmed to 17.59 dollars per ounce from 17.55 dollars.
On the London Platinum and Palladium Market, platinum decreased to 1,675 dollars per ounce at the late fixing on Friday from 1,726 dollars. Palladium slipped to 367 dollars per ounce from 383 dollars.
BASE METALS: Base metals prices were mixed in subdued trade. "Poor economic data reminded the market of the weak underlying demand side fundamentals that might be signalling the end of the commodity boom," said BaseMetals analyst William Adams.
"Overall the metals seem relatively directionless, which given the summer slowdown is not too surprising, but choppy trading is likely to remain in force."
By Friday, copper for delivery in three months eased to 7,924 dollars per tonne on the London Metal Exchange from 7,930 dollars a week earlier.
Three-month aluminium dropped to 2,929 dollars per tonne from 2,957 dollars.
Three-month lead rose to 2,150 dollars per tonne from 2,123 dollars. Three-month zinc edged up to 1,850 dollars per tonne from 1,825 dollars. Three-month tin decreased to 21,525 dollars per tonne from 22,449 dollars. Three-month nickel rose to 18,750 dollars per tonne from 18,299 dollars.
GRAINS AND SOYA: Grains and soya prices edged higher. By Friday on the Chicago Board of Trade, maize for September delivery increased to 5.87 dollars per bushel from 5.77 dollars the previous week.
November-dated soyabean meal-used in animal feed-firmed to 13.98 dollars from 13.86 dollars.
Wheat for August delivery was up at 8.00 dollars per bushel from 7.95 dollars.
COFFEE: Coffee prices rose. By Friday on LIFFE, Robusta for September delivery leapt to 2,417 dollars per tonne from 2,330 dollars a week earlier. On the NYBOT, Arabica for September delivery rallied to 138.85 US cents per pound from 135.90 cents.
COCOA: Cocoa prices increased in London and New York. By Friday on LIFFE, London's futures exchange, the price of cocoa for September delivery rose to 1,592 pounds per tonne from 1,482 pounds a week earlier.
On the New York Board of Trade (NYBOT), the September cocoa contract gained to 2,965 dollars per tonne from 2,762 dollars.
SUGAR: Sugar prices gained ground. By Friday on LIFFE, the price per tonne of white sugar for October delivery jumped to 398 pounds from 355.90 pounds the previous week. On NYBOT, the price of unrefined sugar for October delivery rose to 14.11 US cents per pound from 12.30 cents.
RUBBER: Malaysian rubber prices fell further. On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 309.60 US cents per kilogramme from 311.40 US cents a week ago.