Commodity prices rise amid supply issues

FE Team | Published: January 19, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

LONDON, Jan 18 (AFP) : World oil prices rose this week as traders balanced positive global economic data against an improving supply picture.
Elsewhere on commodity markets, sugar futures sank to fresh multi-year lows on prospects of a plentiful harvest. Raw material prices moved also on news that the World Bank had upgraded its 2014 forecast for global economic growth, suggesting potential improvement in demand.
The World Bank said that both high-income and developing countries appeared to be "finally turning the corner five years after the global financial crisis".
Global growth was estimated to hit 3.2 per cent this year, accelerating from a 2.4 per cent annual pace in 2013, the Bank said.
OIL: Brent crude prices hit a two-month low Friday on oversupply concerns but ended the week higher overall as positive economic growth data indicated firmer demand.
Brent North Sea crude for March delivery slid to $105.44 a barrel-the lowest level since the end of 2013.
The prospect of more supplies from Libya and Iran has weighed on sentiment this week.
Added to the supply picture, the United States is also expected to ramp up production this year.
On Thursday, oil cartel OPEC nudged up its world oil demand growth forecasts for 2013 and 2014, citing positive developments in Europe and North America.
For 2013, the 12-member Organization of Petroleum Exporting Countries estimated demand at 89.86 million barrels per day (mbd), up 0.94 mbd from demand in 2012.
In its previous monthly report in December, growth had been forecast at 0.87 mbd.
PRECIOUS METALS: Gold prices advanced this week. The market lacks any firm direction and inspiration seems in short supply," said analysts at traders Triland Metals.
By late Friday on the London Bullion Market, the price of gold rose to $1,250 an ounce from $1,244.25 a week earlier.
Silver climbed to $20.01 an ounce from $19.80.
On the London Platinum and Palladium Market, platinum increased to $1,447 an ounce from $1,425.
Palladium advanced to $747 an ounce from $737.
BASE METALS: Base or industrial metals prices mostly rose across the board on a tightening of supplies.
"The situation has tightened on many metals markets recently, partly due to supply and partly due to demand," said analysts at Commerzbank.
COFFEE: Coffee futures stabilised, supported by worries about the impact of dry weather on key producer Brazil.
"Worries about forecasts calling for unfavourable hot and dry weather in Brazil helped to underpin coffee futures, as did uncertainty surrounding the size of the country's upcoming coffee crop," said industry publication The Public Ledger.
SUGAR: The sugar market plummeted to its lowest levels in more than three and a half years, as sentiment was plagued by abundant supplies.
Sugar dived on Thursday to $413.20 in London-a level last seen in April 2009. New York prices hit 15.10 US cents, which was last witnessed in June 2010.
COCOA: Futures bounded higher on keen demand in Europe and North America, traders said.
By Friday on LIFFE, London's futures exchange, cocoa for delivery in March climbed to £1,756 a tonne from £1,726 a week earlier.
On ICE Futures US, cocoa for March increased to $2,740 a tonne from $2,697.