Surging oil price smashes through 92 dollars
Sunday, 28 October 2007
LONDON, Oct 27 (AFP): Crude oil prices rocketed towards 100 dollars a barrel this week on supply worries linked to fraught tensions in key crude producers and falling energy stockpiles in the United States.
OIL: World oil prices surged to historic highs Friday, breaching 92 dollars for the first time in New York on rising tension in crude-rich Iran and tight US energy supplies.
"Now that oil is in the 90s, it is much easier to reach 100 dollars," said Astmax fund manager Tetsu Emori.
New York's main futures contract, light sweet crude soared to a record- high 92.22 dollars per barrel. In London, Brent North Sea crude struck an all-time pinnacle of 89.30 dollars per barrel.
Crude futures have rocketed by about 10 dollars in only a month and by 30 dollars, or 50 per cent, in a year.
The dollar slumped to a record low against the euro Friday after poor US economic data heightened expectations of a fresh cut to US interest rates next week, dealers said.
The talks broke up after 90 minutes, however, and it was not immediately known if and when they would resume.
By Friday, Brent North Sea crude for December delivery leapt to 88.35 dollars a barrel, from 83.87 dollars a week earlier.
New York's main oil futures contract, light sweet crude for delivery in December, soared to 91.10 dollars a barrel, which compared with 88.59 dollars for the November contract a week earlier.
PRECIOUS METALS: Prices mainly rose, with gold hitting the highest level since the start of 1980, on the back of the weak dollar and record high crude oil prices, traders said. Precious metals were "supported by the continued dollar weakness, the geopolitical environment and buoyant oil prices," said analysts at Barclays Capital.
Gold prices surged Friday as high as 782.00 dollars per ounce, which was last seen in January 1980.
Dollar-denominated commodities benefit from a weak US unit because it makes them cheaper for buyers using stronger currencies.
Meanwhile, soaring oil prices spark inflationary concerns, while gold is regarded as a haven in troubled times.
Platinum held close to last week's record high of 1,460 dollars per ounce as the white metal found support from dwindling stocks and fierce demand.
On the London Bullion Market, gold jumped to 779.15 dollars an ounce at Friday's late fixing, from 763 dollars a week earlier.
Silver climbed to 14.07 dollars an ounce at Friday's late fixing, from 13.83 dollars a week earlier.
On the London Platinum and Palladium Market, platinum firmed to 1,454 dollars an ounce at the late fixing Friday, from 1,452 dollars a week earlier.
Palladium was unchanged at 370 dollars an ounce.
BASE METALS: Base metals prices mostly fell in the wake of poor data which pointed towards a slowing US economy.
Nevertheless, they remained underpinned by the likelihood of an interest rate cut from the US Federal Reserve, which could boost US demand for commodities.
Most analysts expect the Fed to cut rates by a quarter-point next Wednesday to 4.50 per cent.
On Friday, the price of copper for delivery in three months eased to 7,870 dollars a tonne on the London Metal Exchange, from 7,875 dollars a week earlier.
Three-month aluminium prices slid to 2,534 dollars a tonne, from 2,559 dollars.
Three-month nickel prices fell to 31,800 dollars a tonne, from 32,300 dollars.
Three-month lead prices sank to 3,695 dollars a tonne, from 3,740 dollars.
Three-month zinc prices slid to 2,910 dollars a tonne, from 2,985 dollars.
Three-month tin prices rose to 16,500 dollars a tonne, from 16,400 dollars.
COCOA: Cocoa prices steadied in quiet trade.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery slipped to 942 pounds a tonne, from 951 pounds a week earlier.
On the New York Board of Trade (NYBOT), the December contract firmed to 1,893 dollars a tonne, from 1,879 dollars the previous Friday.
COFFEE: Coffee prices fell, despite the arrival of rain in key producer Brazil.
By Friday on the LIFFE, Robusta quality for November delivery recoiled to 2,066 dollars a tonne, from 2,145 dollars one week earlier.
On the NYBOT, Arabica for December delivery dipped to 120.65 US cents a pound, from 124.66 cents.
SUGAR: Sugar prices rose as traders tracked supply problems in major exporter India.
"The market has found support during the last week, partly as a result of the Indian crop being delayed", said Peter de Klerk, analyst at Czarnikow Group.
Sugar also found support from soaring crude oil prices, because sugar cane is used to produce ethanol, a cheaper biofuel alternative to gasoline or petrol.
By Friday on the LIFFE, the price per tonne of white sugar for December delivery increased to 288.10 pounds, from 275.60 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for March delivery rose to 10.47 US cents a pound, from 10.20 cents a week earlier.
GRAINS AND SOYA: Wheat prices fell, but maize was also driven higher by demand for biofuel production amid surging crude oil prices.
"Investors pay a lot of attention on what is happening to energy prices," said AG Edwards analyst Bill Nelson.
By Friday on the Chicago Board of Trade, the price of maize for December delivery rose to 3.71 dollars a bushel, from 3.70 dollars a week earlier.
Wheat for December delivery fell to 8.07 dollars a bushel, from 8.55 dollars the previous week.
November-dated soyabean meal-used in animal feed-gained to 10.04 dollars, from 9.83 dollars. On the LIFFE, the price per tonne of wheat for May delivery stood at 162.50 pounds.
RUBBER: The price of rubber rose amid high oil prices and wet weather, which hampers output, analysts said.
"The prevailing wet weather and high oil prices are expected to drive rubber prices upwards," said an official with a rubber production firm.
Oil is used in the production of synthetic rubber.
On Friday, the Malaysian Rubber Board's benchmark SMR20 increased to 233.80 US cents per kilogramme, compared with 231.65 US cents the previous week.
WOOL: The price of wool slid on profit-taking, while the strong Australian dollar made the commodity more expensive for buyers outside leading producer Australia.
The Australian dollar traded Friday at the highest level against the US currency, boosted by speculation that Australian interest rates would rise next month.
The Australian wool market finished 1.5 per cent lower on average, with the Eastern Index down 14 cents to close at 9.74 Australian dollars a kilo.
OIL: World oil prices surged to historic highs Friday, breaching 92 dollars for the first time in New York on rising tension in crude-rich Iran and tight US energy supplies.
"Now that oil is in the 90s, it is much easier to reach 100 dollars," said Astmax fund manager Tetsu Emori.
New York's main futures contract, light sweet crude soared to a record- high 92.22 dollars per barrel. In London, Brent North Sea crude struck an all-time pinnacle of 89.30 dollars per barrel.
Crude futures have rocketed by about 10 dollars in only a month and by 30 dollars, or 50 per cent, in a year.
The dollar slumped to a record low against the euro Friday after poor US economic data heightened expectations of a fresh cut to US interest rates next week, dealers said.
The talks broke up after 90 minutes, however, and it was not immediately known if and when they would resume.
By Friday, Brent North Sea crude for December delivery leapt to 88.35 dollars a barrel, from 83.87 dollars a week earlier.
New York's main oil futures contract, light sweet crude for delivery in December, soared to 91.10 dollars a barrel, which compared with 88.59 dollars for the November contract a week earlier.
PRECIOUS METALS: Prices mainly rose, with gold hitting the highest level since the start of 1980, on the back of the weak dollar and record high crude oil prices, traders said. Precious metals were "supported by the continued dollar weakness, the geopolitical environment and buoyant oil prices," said analysts at Barclays Capital.
Gold prices surged Friday as high as 782.00 dollars per ounce, which was last seen in January 1980.
Dollar-denominated commodities benefit from a weak US unit because it makes them cheaper for buyers using stronger currencies.
Meanwhile, soaring oil prices spark inflationary concerns, while gold is regarded as a haven in troubled times.
Platinum held close to last week's record high of 1,460 dollars per ounce as the white metal found support from dwindling stocks and fierce demand.
On the London Bullion Market, gold jumped to 779.15 dollars an ounce at Friday's late fixing, from 763 dollars a week earlier.
Silver climbed to 14.07 dollars an ounce at Friday's late fixing, from 13.83 dollars a week earlier.
On the London Platinum and Palladium Market, platinum firmed to 1,454 dollars an ounce at the late fixing Friday, from 1,452 dollars a week earlier.
Palladium was unchanged at 370 dollars an ounce.
BASE METALS: Base metals prices mostly fell in the wake of poor data which pointed towards a slowing US economy.
Nevertheless, they remained underpinned by the likelihood of an interest rate cut from the US Federal Reserve, which could boost US demand for commodities.
Most analysts expect the Fed to cut rates by a quarter-point next Wednesday to 4.50 per cent.
On Friday, the price of copper for delivery in three months eased to 7,870 dollars a tonne on the London Metal Exchange, from 7,875 dollars a week earlier.
Three-month aluminium prices slid to 2,534 dollars a tonne, from 2,559 dollars.
Three-month nickel prices fell to 31,800 dollars a tonne, from 32,300 dollars.
Three-month lead prices sank to 3,695 dollars a tonne, from 3,740 dollars.
Three-month zinc prices slid to 2,910 dollars a tonne, from 2,985 dollars.
Three-month tin prices rose to 16,500 dollars a tonne, from 16,400 dollars.
COCOA: Cocoa prices steadied in quiet trade.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for December delivery slipped to 942 pounds a tonne, from 951 pounds a week earlier.
On the New York Board of Trade (NYBOT), the December contract firmed to 1,893 dollars a tonne, from 1,879 dollars the previous Friday.
COFFEE: Coffee prices fell, despite the arrival of rain in key producer Brazil.
By Friday on the LIFFE, Robusta quality for November delivery recoiled to 2,066 dollars a tonne, from 2,145 dollars one week earlier.
On the NYBOT, Arabica for December delivery dipped to 120.65 US cents a pound, from 124.66 cents.
SUGAR: Sugar prices rose as traders tracked supply problems in major exporter India.
"The market has found support during the last week, partly as a result of the Indian crop being delayed", said Peter de Klerk, analyst at Czarnikow Group.
Sugar also found support from soaring crude oil prices, because sugar cane is used to produce ethanol, a cheaper biofuel alternative to gasoline or petrol.
By Friday on the LIFFE, the price per tonne of white sugar for December delivery increased to 288.10 pounds, from 275.60 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for March delivery rose to 10.47 US cents a pound, from 10.20 cents a week earlier.
GRAINS AND SOYA: Wheat prices fell, but maize was also driven higher by demand for biofuel production amid surging crude oil prices.
"Investors pay a lot of attention on what is happening to energy prices," said AG Edwards analyst Bill Nelson.
By Friday on the Chicago Board of Trade, the price of maize for December delivery rose to 3.71 dollars a bushel, from 3.70 dollars a week earlier.
Wheat for December delivery fell to 8.07 dollars a bushel, from 8.55 dollars the previous week.
November-dated soyabean meal-used in animal feed-gained to 10.04 dollars, from 9.83 dollars. On the LIFFE, the price per tonne of wheat for May delivery stood at 162.50 pounds.
RUBBER: The price of rubber rose amid high oil prices and wet weather, which hampers output, analysts said.
"The prevailing wet weather and high oil prices are expected to drive rubber prices upwards," said an official with a rubber production firm.
Oil is used in the production of synthetic rubber.
On Friday, the Malaysian Rubber Board's benchmark SMR20 increased to 233.80 US cents per kilogramme, compared with 231.65 US cents the previous week.
WOOL: The price of wool slid on profit-taking, while the strong Australian dollar made the commodity more expensive for buyers outside leading producer Australia.
The Australian dollar traded Friday at the highest level against the US currency, boosted by speculation that Australian interest rates would rise next month.
The Australian wool market finished 1.5 per cent lower on average, with the Eastern Index down 14 cents to close at 9.74 Australian dollars a kilo.