Oil prices surge to records highs, copper hits historic peak
Sunday, 6 July 2008
LONDON, July 5 (AFP): The price of oil set a record high above 146 dollars a barrel this week owing to falling reserves of US crude, simmering tensions over Iran and a weak dollar, traders said.
OIL: Brent North Sea oil for August delivery surged to a life-time peak of 146.69 dollars a barrel Thursday, before cooling as traders banked their profits.
New York's main oil contract, light sweet crude for August delivery, leapt to an all-time pinnacle of 145.85 dollars the same day.
Oil prices, which have doubled in value over the past year, were driven by news that American crude stockpiles fell by 2.0 million barrels to stand at 299.8 million barrels in the week to June 27.
The US government's Energy Information Administration had also revealed Wednesday that crude inventories were 15.3 per cent lower than at the same stage one year ago.
"It was the first time inventory fell below the psychologically critical 300-million-barrel threshold since January," said PetroMatrix analyst Olivier Jakob.
The latest record-breaking price surge also came after Iranian Oil Minister Gholam Hossein Nozari said that Iran would react fiercely to any military attack against the oil exporter.
The OPEC oil exporting group said it would be difficult to replace the crude output of Iran should the country face attack.
There has been a surge in speculation recently that Israel might be planning a military strike against Iran's nuclear sites.
PRECIOUS METALS: Gold, seen as a haven in times of economic troubles, reached 946.40 dollars a tonne, the highest level since April.
On the London Bullion Market, gold advanced to 931.25 dollars per ounce at Friday's late fixing from 919.50 dollars a week earlier.
Silver grew to 18.01 dollars per ounce from 17.40 dollars. On the London Platinum and Palladium Market, platinum dropped to 2,012 dollars per ounce at the late fixing Friday from 2,053 dollars a week earlier.
BASE METALS: Copper prices soared to historic heights, boosted by a weak US currency and strike action by miners in Chile and Peru, traders said.
On the London Metal Exchange (LME), copper for delivery in three months hit 8,940 dollars a tonne, beating the previous high of 8,880 reached in April.
The Latin American nation is the world's biggest producer of copper, which is used for electrical wiring and plumbing.
Copper futures also benefited from a weak dollar, which makes the base metal cheaper for buyers using stronger currencies.
COCOA: Cocoa prices reached 3,290 dollars a tonne in New York, the highest point since March 1980, before falling on profit-taking. In London, prices reached a 22-year peak of 1,748 pounds a tonne.
Cocoa futures are rising on concerns over tight supplies in leading producer Ivory Coast.
By Friday on LIFFE, London's futures exchange, the price of cocoa for September delivery dropped to 1,609 pounds per tonne from 1,695 pounds a week earlier.
COFFEE: Coffee prices extended gains in London on concerns about dry weather in Brazil which hampers output.
By Friday on LIFFE, Robusta for September delivery rose to 2,480 dollars per tonne from 2,420 dollars a week earlier.
On the NYBOT, Arabica for September delivery slid to 151.90 US cents per pound from 152.20 cents.
SUGAR: Sugar prices reached the highest levels since March as oil prices surged.
The raw material is used in the production of ethanol, which is a cheaper alternative to motor fuel.
By Friday on LIFFE, the price per tonne of white sugar for October delivery rallied to 393 pounds from 377.80 pounds the previous week.
RUBBER: Malaysian rubber prices extended gains. "Rubber prices moved upwards in tandem with surging oil prices," said a dealer who requested anonymity. Crude oil is used to make synthetic rubber.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 325.50 US cents per kilogramme from 319.40 cents a week earlier.
WOOL: The wool market closed 0.5 per cent lower on average this week in major producer Australia.
"Buyers for China were dominant, with strong support from buyers for Europe and India," said the Australian Wool Industries Secretariat.
The Eastern Index was steady at 8.74 Australian dollars a kilo.
OIL: Brent North Sea oil for August delivery surged to a life-time peak of 146.69 dollars a barrel Thursday, before cooling as traders banked their profits.
New York's main oil contract, light sweet crude for August delivery, leapt to an all-time pinnacle of 145.85 dollars the same day.
Oil prices, which have doubled in value over the past year, were driven by news that American crude stockpiles fell by 2.0 million barrels to stand at 299.8 million barrels in the week to June 27.
The US government's Energy Information Administration had also revealed Wednesday that crude inventories were 15.3 per cent lower than at the same stage one year ago.
"It was the first time inventory fell below the psychologically critical 300-million-barrel threshold since January," said PetroMatrix analyst Olivier Jakob.
The latest record-breaking price surge also came after Iranian Oil Minister Gholam Hossein Nozari said that Iran would react fiercely to any military attack against the oil exporter.
The OPEC oil exporting group said it would be difficult to replace the crude output of Iran should the country face attack.
There has been a surge in speculation recently that Israel might be planning a military strike against Iran's nuclear sites.
PRECIOUS METALS: Gold, seen as a haven in times of economic troubles, reached 946.40 dollars a tonne, the highest level since April.
On the London Bullion Market, gold advanced to 931.25 dollars per ounce at Friday's late fixing from 919.50 dollars a week earlier.
Silver grew to 18.01 dollars per ounce from 17.40 dollars. On the London Platinum and Palladium Market, platinum dropped to 2,012 dollars per ounce at the late fixing Friday from 2,053 dollars a week earlier.
BASE METALS: Copper prices soared to historic heights, boosted by a weak US currency and strike action by miners in Chile and Peru, traders said.
On the London Metal Exchange (LME), copper for delivery in three months hit 8,940 dollars a tonne, beating the previous high of 8,880 reached in April.
The Latin American nation is the world's biggest producer of copper, which is used for electrical wiring and plumbing.
Copper futures also benefited from a weak dollar, which makes the base metal cheaper for buyers using stronger currencies.
COCOA: Cocoa prices reached 3,290 dollars a tonne in New York, the highest point since March 1980, before falling on profit-taking. In London, prices reached a 22-year peak of 1,748 pounds a tonne.
Cocoa futures are rising on concerns over tight supplies in leading producer Ivory Coast.
By Friday on LIFFE, London's futures exchange, the price of cocoa for September delivery dropped to 1,609 pounds per tonne from 1,695 pounds a week earlier.
COFFEE: Coffee prices extended gains in London on concerns about dry weather in Brazil which hampers output.
By Friday on LIFFE, Robusta for September delivery rose to 2,480 dollars per tonne from 2,420 dollars a week earlier.
On the NYBOT, Arabica for September delivery slid to 151.90 US cents per pound from 152.20 cents.
SUGAR: Sugar prices reached the highest levels since March as oil prices surged.
The raw material is used in the production of ethanol, which is a cheaper alternative to motor fuel.
By Friday on LIFFE, the price per tonne of white sugar for October delivery rallied to 393 pounds from 377.80 pounds the previous week.
RUBBER: Malaysian rubber prices extended gains. "Rubber prices moved upwards in tandem with surging oil prices," said a dealer who requested anonymity. Crude oil is used to make synthetic rubber.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 325.50 US cents per kilogramme from 319.40 cents a week earlier.
WOOL: The wool market closed 0.5 per cent lower on average this week in major producer Australia.
"Buyers for China were dominant, with strong support from buyers for Europe and India," said the Australian Wool Industries Secretariat.
The Eastern Index was steady at 8.74 Australian dollars a kilo.