LONDON, March 19:- World oil prices soared this week to record high points, nearing $58 per barrel in New York, underpinned by robust global demand as traders shrugged off a move by Opec to hike its output quota. Copper futures jumped to the highest level for more than 16 years, powered by aggressive Chinese demand and falling inventories. Coffee hit fresh multi-year high points due to forecasts of lower supplies. The Commodities Research Bureau’s index of 17 commodities jumped to 320.15 points on Friday from 316.26 points a week earlier. It hit 323.33 points on Wednesday, its highest level for 24 years. GOLD: Gold prices fell this week after the dollar’s rebound against the euro. “Gold and the other precious metals beat a retreat” as the dollar began its rally on Thursday, said James Moore, an analyst for the specialist website TheBullionDesk.com. A stronger dollar makes gold — which is priced in the US unit on world markets — more expensive to buyers using other currencies.
The dollar staged a rebound against the other major currencies after the publication of better-than-expected US economic data.
Official figures showed that US jobless claims fell 10,000 to 318,000 last week, while the Conference Board’s index of leading US economic indicators increased 0.1 per cent in February, as expected.
The greenback had tumbled Wednesday on news the current-account deficit, a broad measure of trade and investment flows, reached a record 6.3 per cent of US gross domestic product in the fourth quarter of 2004.
The 187.9-billion-dollar deficit exceeded the average analyst estimate of 181.7 billion.
On the London Bullion Market, gold prices dropped to 437.15 dollars per ounce at the late fixing on Friday from 443.70 dollars a week earlier.
SILVER: Silver fell from three-month high points in the wake of gold’s weak showing.
“With the base complex and gold potentially looking at further consolidation, silver is sure to follow,” Moore said.
Prices had reached 7.57 dollars per ounce a week earlier, the highest level since December 7.
Silver slipped to 7.335 dollars per ounce at the late fixing on Friday from 7.415 dollars a week earlier.
PLATINUM AND PALLADIUM: Platinum and palladium prices rose in the wake of a rally by the South African rand which threatens production across the leading producer.
“With the rand continuing to gain against the dollar... many South African producers are still struggling with profit margins, potentially leading to the closure of less profitable sites and curbing market supply levels,” Moore said.
By Friday, platinum prices rose to 873 dollars per ounce on the London Platinum and Palladium Market from 866 dollars a week earlier.
Palladium prices climbed to 200 dollars per ounce from 195.50 dollars the previous week.
BASE METALS: Copper reached the highest level for more than 16 years on strong Chinese demand and sliding stockpiles, while the rest of the complex fell on profit-taking.
Copper rose to as high as 3,305 dollars per ton in Wednesday trading.
The International Copper Study Group forecast that world production of the metal would remain in deficit in 2005 and 2006.
“Given extremely low inventory levels, the lack of sufficient additional supply and very robust demand growth will certainly keep prices supported at high levels for longer,” Barclays Capital analyst Ingrid Sternby said.
Aluminium fell below 2,000 dollars per ton after surpassing the symbolic level the week before for the first time in 10 years.
By Friday, three-month copper prices rose to 3,257 dollars per ton on the London Metal Exchange from 3,240.50 dollars the previous week.
Three-month aluminium prices fell to 1,972 dollars per ton from 2,005 dollars.
Three-month nickel prices dropped to 15,900 dollars per ton from 16,100 dollars.
Three-month lead prices retreated to 955 dollars per ton from 975 dollars.
Three-month zinc prices declined to 1,370 dollars per ton from 1,436 dollars.
Three-month tin prices eased to 8,455 dollars per ton from 8,500 dollars.
OIL: World oil prices soared to fresh record high levels, with New York’s main crude contract above $57 per barrel for the first time.
New York’s main contract, light sweet crude for delivery in April, jumped to as high as 57.60 dollars per barrel in electronic deals on Thursday.
In London, the price of Brent North Sea crude oil for delivery in May jumped reach a peak of 56.15 dollars per barrel on Thursday — the first time it had broken the 56-dollar barrier.
“It is really a market pushed up by demand,” Investec analyst Bruce Evers said.
“Everybody keeps on talking about China, but it is not just China, the demand in India, Brazil, North America is growing strongly, too.”
Earlier this month, the International Energy Agency said that economic growth in the United States and China would drive up oil demand this year as the Paris-based organisation raised its estimate for global oil demand in 2005 by 330,000 barrels per day to 84.3 million barrels per day.
Prices began hitting new summits Wednesday after the US Department of Energy released data showing falls to inventories of gasoline and distillates.
The DoE said gasoline supplies dropped by 2.9 million barrels and distillates by 1.9 million barrels in the week ended March 11.
The falls sparked worries that supplies would struggle to keep up with demand.
The surge in prices came despite a move by the Organization of Petroleum Exporting Countries on Wednesday to increase its output quota.
By Friday New York’s light sweet crude for April delivery rose to 56.60 dollars per barrel from 53.40 dollars the previous week.
In London, Brent North Sea crude for May delivery rose to 55.40 dollars from 52.84 dollars a week earlier.
RUBBER: Rubber prices rose this week in the wake of record oil prices.
“Higher oil prices pushed up synthetic rubber prices,” one London trader said. Crude oil is used in the manufacture of synthetic rubber.
“Investors move their money in any commodity that can go up, and rubber looks cheap by comparison to oil,” the trader added.
In Osaka, the RSS 3 April contract rose to 141 US cents on Friday from 135.90 cents a week earlier.
Singapore’s RSS 3 April contract stood at 132 US cents on Friday, compared with 131 cents last week.
COCOA: Cocoa futures leapt to the highest point for nearly two years on tensions in major producer Ivory Coast.
A ton of cocoa reached as high as 1,850 dollars in New York on Thursday and 984 pounds in London.
On the CSCE, the New York futures market, the May contract advanced to 1,840 dollars per ton on Friday, from 1,818 dollars the previous week.
COFFEE: Coffee prices eased after hitting five year-high points due to forecasts of a smaller crop in major producer Brazil.
The market was “supported by expectations of a small Brazil crop, tightening supply and dry weather in Vietnam”, Refco analyst Ann Prendergast said.
Robusta quality coffee for May delivery shot to 1,125 dollars in London on March 11, the highest level since February 2000.
In New York, Arabica for May delivery reached 139.50 US cents — a high point last seen in December 1999.
SUGAR: Sugar prices steadied this week.
“Fundamentals remains supportive on expectations of a global deficit,” Prendergast said.
Prices had risen to the highest level for three and a half years in London and for three and a half months in New York at the end of January on strong Pakistan demand, but have fallen since on profit taking.
By Friday on LIFFE, the price of a ton of white sugar for May delivery dropped to 261 dollars on Friday from 265.30 dollars a week earlier.
On the CSCE in New York, a pound of unrefined sugar for May delivery edged down to 9.06 cents on Friday from 9.12 cents the previous week.
GRAINS AND SOYA: Soya and grains rose on technical buying.
The increase in prices was “more technical”, AG Edwards analyst Victor Lespinasse said.
“Fundamentals like weather in South America have taken a back seat.”
COTTON: Cotton prices soared to a six-month high point on strong demand amid an expected production deficit for the forthcoming season.
Cotton hit 54.20 cents in New York trading on Wednesday, the highest point since September 14, before falling back on profit-taking.
“The market remains supported by demand, higher oil prices and a weaker dollar,” Refco’s Prendergast said.
New York’s May contract eased to 51.50 cents per pound by Friday from 52.85 cents a week earlier.
The Cotton Outlook Index of physical cotton rose to 57.25 cents on Thursday from 56.40 cents a week earlier.
WOOL: Wool prices steadied this week as the US dollar strengthened against its Australian counterpart.
“The Australian wool market finished this week with prices 0.3 per cent lower,” the Australian Wool Industries Sectretariat said.
A stronger US dollar makes Australia’s wool exports less expensive.
The Australian Eastern index rose to 7.23 Australian dollars per kilo on Thursday from 7.16 dollars a week earlier.—AFP
