Oil spikes towards 100 dollars after Bhutto murder
Sunday, 30 December 2007
LONDON, Dec 29 (AFP): Oil prices surged towards 100 dollars per barrel this week after Pakistani opposition leader Benazir Bhutto was killed by a suicide bomber.
On Friday, geopolitical jitters and weak US energy stockpiles drove New York crude to 97.92 dollars. That was just 1.37 dollars off the record 99.29 hit on November 21.
Bhutto's assasination Thursday also sent funds flowing away from equities and into precious metals as investors sought a safer haven for their cash amid fears of spreading turmoil in the region.
Platinum enjoyed another record pinnacle, while gold struck the highest level for one month.
In general, trading volumes were thin due to the Christmas and New Year holidays. Most global commodity markets now have one final trading day-Monday-until the start of 2008.
OIL: The oil market appeared set to end 2007 on a high note after striking a record peak near 100 dollars per barrel in November.
The price of crude has sky-rocketed this year from a low point of just below 50 dollars per barrel in January, propelled by tense geopolitical tensions and sliding US energy inventories.
Dealers said Bhutto's killing Thursday, which plunged the nation into crisis and sparked global condemnation and concern, would have a psychological impact on the market even though the country is not an oil producer.
Oil had hit a record high in November, prompting calls for the OPEC cartel to lift production at its meeting in Abu Dhabi earlier this month.
But the Organisation of the Petroleum Exporting Countries refrained from lifting crude output.
On Friday, New York's main oil futures contract, light sweet crude for delivery in February, leapt to 97.61 dollars, compared with 92.19 dollars a week earlier.
Brent North Sea crude for February jumped to 95.68 dollars, compared with 91.74 dollars a week earlier.
GOLD/SILVER: Gold prices hit 835.90 dollars per ounce Friday, which was the highest level for more than one month, while silver also rose.
So far this year, gold has won 30 per cent in value and silver has gained 14 per cent.
Gains were driven by the falling US dollar, which encourages demand for dollar-priced commodities because it makes them cheaper for buyers using stronger currencies.
Gold also benefited from its safe-haven status, as high oil prices forced many commodity investors to buy the precious metal as they sought to guard against rising inflation.
On the London Bullion Market, gold prices climbed to 833.75 dollars an ounce at Friday's late fixing, from 810.50 dollars a week earlier.
Silver increased to 14.75 dollars an ounce, from 14.28 dollars.
PLATINUM/PALLADIUM: The price of platinum reached a record high 1,545.75 dollars an ounce, aided by production problems and the weak US currency.
The price has been firm since November because of concern about deliveries from South Africa, the biggest producer of the white metal, where production has been affected by accidents and a general strike by miners.
Platinum gained about 37 per cent in value this year, while palladium rose by more than 12 per cent.
On the London Platinum and Palladium Market, platinum jumped to 1,530 dollars an ounce at the late fixing Friday, from 1,516 dollars a week earlier.
Palladium rose to 364 dollars an ounce, from 355 dollars.
BASE METALS: Several base metals enjoyed a record-breaking 2007 on the back of supply concerns and fierce demand, with nickel, lead and tin hitting historical highs.
But prices have since pulled back as the global credit crisis stoked fears over world economic growth-and metal demand.
In 2007, the star performer was lead, which won 52 per cent in value. Tin was not far behind with a hefty gain of 41.2 per cent and copper increased by 6.4 per cent.
On the downside, zinc crumbled by 43.1 per cent in value, nickel erased 19 per cent and aluminium shed 7.7 per cent during 2007.
On Friday, the price of copper for delivery in three months fell to 6,780 dollars a tonne on the LME, from 6,790 dollars Friday of the previous week.
Three-month aluminium prices rose to 2,430 dollars a tonne, from 2,410 dollars.
Three-month nickel sank to 26,800 dollars a tonne, from 27,050 dollars.
Three-month lead climbed to 2,560 dollars a tonne, from 2,365 dollars.
Three-month zinc gained to 2,410 dollars a tonne, from 2,397 dollars.
Three-month tin advanced to 16,450 dollars a tonne, from 16,425 dollars.
COCOA: Cocoa prices pulled lower this week, after a year in which the commodity hit a four-year peaks owing largely to unrest in Ivory Coast.
In 2007, prices increased by about one fifth in London. The commodity has now risen in value for three successive years.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for March delivery slid to 1,050 pounds a tonne, from 1,071 pounds last week.
On the New York Board of Trade (NYBOT), the March cocoa contract sank to 2,059 dollars a tonne from 2,092 dollars.
COFFEE: Coffee prices were stable, but were set to finish 2007 in positive territory.
London prices rose by almost a fifth this year owing to the poor quality of Robusta coffee exports from key exporter Vietnam. New York prices, meanwhile, were supported by widespread Arabica crop damage in major producer Brazil.
By Friday on the LIFFE, Robusta quality for March delivery eased to 1,892 dollars a tonne, from 1,899 dollars the previous week.
On the NYBOT, Arabica for March delivery receded to 132.75 US cents a pound from 134.15 cents the previous week.
SUGAR: Sugar futures crept higher at the end of a year which saw prices tumble on the prospect of overproduction.
India is on course to overtake Brazil as the world's biggest sugar producer in 2007/2008, according to the International Sugar Organisation.
By Friday on the LIFFE, the price per tonne of white sugar for March delivery firmed to 317.90 pounds, from 317 pounds the previous week.
On the NYBOT, the price of unrefined sugar for March delivery edged up to 11.04 US cents a pound, from 11.02 cents the previous week.
GRAINS AND SOYA: Soya prices hit a record high on the prospect of rising demand from Asian economic powerhouse China, analysts said. The price of soya has now rocketed by about 75 per cent since the start of the year.
In 2007, wheat prices hit an all-time high in Chicago on fierce global demand and flagging output.
Poor weather in key producing regions-such as Australia, Canada, the United States and parts of Europe-slashed wheat supplies and sent prices through the roof, according to analysts.
Corn, or maize, also had an excellent year, buoyed by demand for ethanol, a clean plant-based fuel made from the crop.
By Friday on the Chicago Board of Trade, the price of maize for March delivery gained to 4.55 dollars a bushel from 4.43 dollars the previous week.
Wheat for March delivery fell to 9.13 dollars a bushel, from 9.49 dollars.
January-dated soyabean meal-used in animal feed-surged to a record 12.20 dollars from 11.77 dollars.
On the LIFFE, the price per tonne of wheat for May delivery rose to 175 pounds, compared with 167 pounds a week earlier.
RUBBER: Rubber prices rose slightly in thin trade this week amid poor weather conditions that have hurt production in producer Malaysia, which has been badly hit by widespread floods after monsoon rains.
Thailand, Indonesia and Malaysia account for some 80 per cent of the world's natural rubber output.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 252.45 US cents per kilogramme from 247.40 cents the previous week.
On Friday, geopolitical jitters and weak US energy stockpiles drove New York crude to 97.92 dollars. That was just 1.37 dollars off the record 99.29 hit on November 21.
Bhutto's assasination Thursday also sent funds flowing away from equities and into precious metals as investors sought a safer haven for their cash amid fears of spreading turmoil in the region.
Platinum enjoyed another record pinnacle, while gold struck the highest level for one month.
In general, trading volumes were thin due to the Christmas and New Year holidays. Most global commodity markets now have one final trading day-Monday-until the start of 2008.
OIL: The oil market appeared set to end 2007 on a high note after striking a record peak near 100 dollars per barrel in November.
The price of crude has sky-rocketed this year from a low point of just below 50 dollars per barrel in January, propelled by tense geopolitical tensions and sliding US energy inventories.
Dealers said Bhutto's killing Thursday, which plunged the nation into crisis and sparked global condemnation and concern, would have a psychological impact on the market even though the country is not an oil producer.
Oil had hit a record high in November, prompting calls for the OPEC cartel to lift production at its meeting in Abu Dhabi earlier this month.
But the Organisation of the Petroleum Exporting Countries refrained from lifting crude output.
On Friday, New York's main oil futures contract, light sweet crude for delivery in February, leapt to 97.61 dollars, compared with 92.19 dollars a week earlier.
Brent North Sea crude for February jumped to 95.68 dollars, compared with 91.74 dollars a week earlier.
GOLD/SILVER: Gold prices hit 835.90 dollars per ounce Friday, which was the highest level for more than one month, while silver also rose.
So far this year, gold has won 30 per cent in value and silver has gained 14 per cent.
Gains were driven by the falling US dollar, which encourages demand for dollar-priced commodities because it makes them cheaper for buyers using stronger currencies.
Gold also benefited from its safe-haven status, as high oil prices forced many commodity investors to buy the precious metal as they sought to guard against rising inflation.
On the London Bullion Market, gold prices climbed to 833.75 dollars an ounce at Friday's late fixing, from 810.50 dollars a week earlier.
Silver increased to 14.75 dollars an ounce, from 14.28 dollars.
PLATINUM/PALLADIUM: The price of platinum reached a record high 1,545.75 dollars an ounce, aided by production problems and the weak US currency.
The price has been firm since November because of concern about deliveries from South Africa, the biggest producer of the white metal, where production has been affected by accidents and a general strike by miners.
Platinum gained about 37 per cent in value this year, while palladium rose by more than 12 per cent.
On the London Platinum and Palladium Market, platinum jumped to 1,530 dollars an ounce at the late fixing Friday, from 1,516 dollars a week earlier.
Palladium rose to 364 dollars an ounce, from 355 dollars.
BASE METALS: Several base metals enjoyed a record-breaking 2007 on the back of supply concerns and fierce demand, with nickel, lead and tin hitting historical highs.
But prices have since pulled back as the global credit crisis stoked fears over world economic growth-and metal demand.
In 2007, the star performer was lead, which won 52 per cent in value. Tin was not far behind with a hefty gain of 41.2 per cent and copper increased by 6.4 per cent.
On the downside, zinc crumbled by 43.1 per cent in value, nickel erased 19 per cent and aluminium shed 7.7 per cent during 2007.
On Friday, the price of copper for delivery in three months fell to 6,780 dollars a tonne on the LME, from 6,790 dollars Friday of the previous week.
Three-month aluminium prices rose to 2,430 dollars a tonne, from 2,410 dollars.
Three-month nickel sank to 26,800 dollars a tonne, from 27,050 dollars.
Three-month lead climbed to 2,560 dollars a tonne, from 2,365 dollars.
Three-month zinc gained to 2,410 dollars a tonne, from 2,397 dollars.
Three-month tin advanced to 16,450 dollars a tonne, from 16,425 dollars.
COCOA: Cocoa prices pulled lower this week, after a year in which the commodity hit a four-year peaks owing largely to unrest in Ivory Coast.
In 2007, prices increased by about one fifth in London. The commodity has now risen in value for three successive years.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for March delivery slid to 1,050 pounds a tonne, from 1,071 pounds last week.
On the New York Board of Trade (NYBOT), the March cocoa contract sank to 2,059 dollars a tonne from 2,092 dollars.
COFFEE: Coffee prices were stable, but were set to finish 2007 in positive territory.
London prices rose by almost a fifth this year owing to the poor quality of Robusta coffee exports from key exporter Vietnam. New York prices, meanwhile, were supported by widespread Arabica crop damage in major producer Brazil.
By Friday on the LIFFE, Robusta quality for March delivery eased to 1,892 dollars a tonne, from 1,899 dollars the previous week.
On the NYBOT, Arabica for March delivery receded to 132.75 US cents a pound from 134.15 cents the previous week.
SUGAR: Sugar futures crept higher at the end of a year which saw prices tumble on the prospect of overproduction.
India is on course to overtake Brazil as the world's biggest sugar producer in 2007/2008, according to the International Sugar Organisation.
By Friday on the LIFFE, the price per tonne of white sugar for March delivery firmed to 317.90 pounds, from 317 pounds the previous week.
On the NYBOT, the price of unrefined sugar for March delivery edged up to 11.04 US cents a pound, from 11.02 cents the previous week.
GRAINS AND SOYA: Soya prices hit a record high on the prospect of rising demand from Asian economic powerhouse China, analysts said. The price of soya has now rocketed by about 75 per cent since the start of the year.
In 2007, wheat prices hit an all-time high in Chicago on fierce global demand and flagging output.
Poor weather in key producing regions-such as Australia, Canada, the United States and parts of Europe-slashed wheat supplies and sent prices through the roof, according to analysts.
Corn, or maize, also had an excellent year, buoyed by demand for ethanol, a clean plant-based fuel made from the crop.
By Friday on the Chicago Board of Trade, the price of maize for March delivery gained to 4.55 dollars a bushel from 4.43 dollars the previous week.
Wheat for March delivery fell to 9.13 dollars a bushel, from 9.49 dollars.
January-dated soyabean meal-used in animal feed-surged to a record 12.20 dollars from 11.77 dollars.
On the LIFFE, the price per tonne of wheat for May delivery rose to 175 pounds, compared with 167 pounds a week earlier.
RUBBER: Rubber prices rose slightly in thin trade this week amid poor weather conditions that have hurt production in producer Malaysia, which has been badly hit by widespread floods after monsoon rains.
Thailand, Indonesia and Malaysia account for some 80 per cent of the world's natural rubber output.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 252.45 US cents per kilogramme from 247.40 cents the previous week.