LONDON, June 18: Strong gasoline demand and heating oil supply concerns in the United States pushed world oil prices near to record levels this week, despite Opec’s decision to increase its daily output quota.
Metal prices mostly rose, with copper striking a historical record amid supply worries and gold hitting a multi-month high.
The Commodities Research Bureau’s index of 17 commodities climbed to 310.98 points on Friday, from 303.02 points the previous week.
GOLD: Gold prices surged to a six-week high point despite the strength of the US currency.
Buying interest has propelled gold to a new six-week high, said James Moore, an analyst at the specialist website TheBullionDesk.com.
On the London Bullion Market, gold prices hit $437.50 per ounce on Friday — a level last seen on March 17.
But that has not been the case recently, analysts said.
The euro/dollar exchange has disconnected from gold in the last couple of weeks, said UBS analyst John Reade.
The European single currency touched a fresh nine-month low point against the US dollar to $1.2017 on Wednesday as the political budget crisis at the European Summit in Brussels unsettled the euro.
SILVER: Silver prices gained ground in the wake of increases in gold and base metals.
Silver was bolstered not only by gold but also by the strong gains in oil and copper, Moore said.
For the moment I think silver will continue to see scaled up selling pressure, he added.
PLATINUM AND PALLADIUM: Platinum prices shot up to their highest levels since April 2004, while palladium rose due to Japanese buying and the appreciation of the South African Rand.
“Platinum is pushing higher,” said Barclays Capital analyst Kamal Naqvi.
The strengthening of the Rand increases production costs of mining companies in South Africa.
Palladium prices stood at $189 per ounce on Friday from $185.
BASE METALS: Base metals prices all made gains with copper prices striking a new historical record amid supply concerns.
Copper reached $3,369 per ton against a backdrop of low stocks and weaker production levels.
Three-month aluminium prices rose to $1,768 per ton Friday from $1,728.
Three-month nickel prices increased to $16,250 per ton on Friday from $15,910.
Three-month lead prices gained to $979 per ton Friday from $968.
Three-month zinc prices climbed to $1,317 per ton Friday from $1,297.
Three-month tin prices stood at $7,625 per ton Friday from $7,575.
OIL: After falling at the start of the week, oil prices shot up above $57 per barrel on Friday, approaching record high points on supply worries despite Op4ec”s decision to increase its daily production quota.
Concerns also persisted that shortages in refinery capacity could mean strong demand for distillates not being met during the fourth quarter.
New York’s main contract, light sweet crude for delivery in July, reached an intra-day high of 58.10 dollars on Friday, while in London, the price of Brent North Sea crude oil for delivery in August peaked at 57.51 dollars.
Prices have risen for three days in a row to reach the highest levels since April 4 when they struck historic levels of 58.28 dollars per barrel in New York and 57.65 dollars in London.
Prices began shooting higher on Wednesday after the US Department of Energy (DoE) said crude oil reserves fell 1.8 million barrels to 339 million in the week ending June 10.
The data was released a few hours after Opec’s 11 members agreed to raise the cartel’s production ceiling by 500,000 barrels per day (bpd) on July 1 and said it might repeat the move by September.
Opec’s quota increase was largely seen as a symbolic gesture, however, because the cartel was already pumping more oil than its official ceiling of 27.5 million bpd set before Wednesday’s increase.
By Friday, New York’s light sweet crude for July delivery rocketed to 57.40 dollars per barrel from 54.45 dollars the previous week.
In London, Brent North Sea crude for August delivery soared to 57.01 dollars per barrel from 53.62 dollars.
COTTON: Cotton prices were mixed amid speculative buying after US export sales exceeded analysts’ expectations.
The US Department of Agriculture said cotton exports rose by 9.0 per cent compared with a week earlier, and by 12.0 per cent compared with the previous four-week average, to 300,300 bales.
New York’s July contract rose to 47.45 cents per pound on Friday from 46.65 cents the previous week.
The Cotton Outlook Index of physical cotton fell to 52.60 cents on Thursday from 53.35 cents a week earlier.
WOOL: Wool prices slid as the Australian dollar strengthened against its US counterpart.
The Australian Wool Market finished this week with prices 1.3-per cent lower, the Australian Wool Industries Secretariat said.
A stronger Australian dollar makes exports more expensive for buyers abroad.
The Australian Eastern index dropped to 7.05 Australian dollars per kilo on Thursday, from 7.13 Australian dollars a week earlier. The British Wooltops index stood at 396 pence from 394 pence.—AFP
