LONDON, Oct 18 (AFP) : Commodity markets were haunted by demand fears this week in the face of mounting global economic worries, with crude oil prices striking four-year lows and base metals also suffering heavy falls.
Markets around the world have been hammered by worries about the global economy as the eurozone, China and Japan struggle to reignite growth.
Those fears increased this week when data from the United States, which has been the only economy showing signs of strength, came in well below expectations.
The oil market was also rocked by persistent worries over abundant supplies.
OIL: Brent hit a fresh four-year low after another sharp sell-off in equities.
Brent sank on Thursday to $82.60 -- a level last seen on November 23, 2010. New York crude slid to $79.78 per barrel, in the first drop below $80 since June 2012.
Both oil contracts have tumbled by around a quarter in value since hitting 2014 highs in June.
Adding to the pain is a supply glut caused by strong US shale production and a return of Libyan oil on to the market after facilities that were closed due to civil unrest resumed operations.
PRECIOUS METALS: Gold forged a five-week peak at $1,249.84 per ounce thanks to demand for the perceived safe haven driven by disappointing global data.
Gold is regarded by investors as a safe bet in times of economic turmoil.
By late Friday on the London Bullion Market, the price of gold had risen to $1,234.25 an ounce from $1,219 a week earlier.
Silver increased to $17.36 an ounce from $17.26.
On the London Platinum and Palladium Market, platinum firmed to $1,259 an ounce from $1,256.
Palladium dropped to $753 an ounce from $784.
BASE METALS: Base or industrial metal prices mostly fell on intensifying anxiety over sliding global stock markets, weak demand and faltering world growth.
COFFEE: The market pushed lower as some traders cashed in profits following recent sharp gains.
By Friday on ICE Futures US, Arabica for delivery in December dipped to 213.20 US cents a pound from 220.80 cents a week earlier.
COCOA: Prices diverged, with traders still on edge about the potential market impact of the Ebola outbreak in west Africa, home to 70 per cent of world cocoa production.
The London-based International Cocoa Organisation (ICCO) added that Ebola-hit Guinea, Liberia and Sierra Leone were only minor cocoa producers.
It added: "Regarding the impact of Ebola on the international cocoa sector, it is noted that harvesting and shipping of cocoa in Guinea, Liberia and Sierra Leone have been seriously curtailed.
Cocoa had soared last month to 3.5-year peaks on worries that Ebola could hit output in Ivory Coast and Ghana -- the two biggest producers which account for 60 per cent of the world's cocoa.
The ICCO also noted that Ghana had not declared any Ebola cases, while Nigeria was "on its way" to being declared Ebola-free after a handful of cases were "decisively handled" by its government.
By Friday on LIFFE, cocoa for delivery in December rose to £2,038 a tonne from £2,029 a week earlier.
On the ICE Futures US exchange, cocoa for December reversed to $3,119 a tonne from $3,128 a week earlier.
SUGAR: The sugar market drifted lower in subdued trade.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in December traded at $426.40 compared with $425.10 a week earlier.
On ICE Futures US, the price of unrefined sugar for March fell to 16.59 US cents a pound from 16.63 US cents a week earlier.
RUBBER: Kuala Lumpur prices rose following an announcement by Malaysia's government that it would help the rubber industry with soft loans.
The Malaysian Rubber Board's benchmark SMR20 stood at 149.90 US cents per kilo on Friday, up from 143.55 US cents the previous week.
Commodities haunted by demand fears as outlook darkens
FE Team | Published: October 19, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
Share if you like