February 5, 2006	Sunday	Muharram 6, 1427

LONDON, Feb 4: World oil prices plunged this week on easing supply concerns, while metals posted fresh historic and multi-year high points, including copper which struck 5,000 dollars per ton for the first time.

Among soft commodities, rubber stretched to a 20-year high point in Tokyo on heightened interest from investment funds.

The Commodities Research Bureau’s index of 17 commodities hit a record on Wednesday of 350.96 points — the best level since its creation in 1957.

On Friday it stood at 344.03 points, compared with 346.29 the previous week.

GOLD: Gold prices struck a fresh 25-year high point, spurred on by keen investment demand.

Gold prices rose to 575.35 dollars per ounce in London trading on Thursday, the highest level since January 1981.

“In the current climate of inflationary concerns, due to rising energy costs, and geo-political uncertainties, particularly in the Middle East, gold looks set to continue higher,” said James Moore, analyst with specialist website TheBullionDesk.com.

Gold could potentially reach 600 dollars per ounce in the short-to-medium term, he added.

On the London Bullion Market, gold prices jumped to 569 dollars per ounce at Friday’s late fixing from 561.75 dollars the previous week.

SILVER: Silver prices followed in the wake of gold, reaching 9.935 dollars per ounce Thursday on the London Bullion Market, the highest point since March 1984, when it hit 10.0 dollars.

Like gold, silver is benefiting from its status as a store of value in troubled times, amid simmering tensions in Iran and worries about creeping inflation which erodes the value of money.

“Despite some resistance around 9.90-95 dollars silver still looks set to target 10 dollars in the short to medium term,” Moore said.

On the London Bullion Market, silver prices gained to 9.81 dollars per ounce at Friday’s fixing, from 9.69 dollars the previous week.

BASE METALS: Copper prices struck 5,000 dollars per ton for the first time and there were historic highs also for lead and zinc.

On Friday, three-month copper prices on the London Metal Exchange struck 5,050 dollars per ton — the highest level since the commodity was first listed in its current format in 1870.

The price of copper, used for electrical wiring and plumbing, had leapt by some 50 per cent during 2005, owing to limited production and low stocks.

Anglo-Australian mining giant Rio Tinto on Thursday announced a record net profit of 5.215 billion US dollars in 2005, fueled by high world commodity prices, booming production and strong demand from China.

On Friday, three-month copper prices on the London Metal Exchange jumped to 5,005 dollars per ton from 4,840 dollars the previous week.

Three-month aluminium prices climbed to 2,624 dollars per ton from 2,508 dollars.

Three-month nickel prices rose to 15,135 dollars per ton from 14,825 dollars.

Three-month lead prices gained to 1,393 dollars per ton from 1,290 dollars. Three-month zinc prices increased to 2,375 dollars per ton from 2,260 dollars.

Three-month tin prices advanced to 7,800 dollars per ton from 7,475 dollars.

OIL: World oil prices dived, as rises in stockpiles of US crude and OPEC’s decision not to cut output helped to offset concerns about tensions in major producer Iran.

The Organization of Petroleum Exporting Countries decided on Tuesday to maintain the 11-member cartel’s output at 28.0 million barrels per day.

The following day, the US Department of Energy said that stockpiles of US crude oil and gasoline increased over the past week.

Despite the heavy price losses, the market remained concerned over Iran’s nuclear ambitions.

The UN atomic agency has delayed until Saturday a pivotal decision on sending Iran’s suspect nuclear program to the UN Security Council.

ExxonMobil Corp., the world’s largest oil company, said this week that it booked record earnings of 36.1 billion dollars in 2005, a year when crude futures hit historic high points above 70 dollars per barrel.

In London, a barrel of Brent North Sea crude for delivery in March plunged 0to 62.97 dollars per barrel on Friday, from 66.07 dollars the previous week.

In New York, a barrel of crude for delivery in March slid to 65.05 dollars per barrel Friday from 67.50 dollars.

RUBBER: Rubber prices bounced to the highest point for more than 20 years in Tokyo on Friday, striking 263.90 yen on keen demand.

“The strength of the commodity sector in general plus the impact on other commodity markets of rising energy costs is illustrated by Asian rubber prices which have become the latest commodity market to establish fresh multi-year price highs,” said analysts at Barclays Capital.

Singapore’s RSS 3 March contract rose to 217 cents on Friday, from 202.50 cents one week ago.

COFFEE: Coffee prices struck an eight-month high on Monday in New York, hitting 125.90 cents per pound, with a scarcity of Vietnamese Robusta “underpinning the market”, Sucden analysts said. Prices later eased on profit-taking.

Vietnam is the world’s second-biggest coffee producer after Brazil.

SUGAR: Sugar prices traded near a 25-year high point in New York and approached a 16-year peak in London on massive investment demand.

In New York on Friday, the price of unrefined sugar reached 19.70 cents, last seen in June 1981. London prices on Friday soared to 457.50 dollars, the highest point since May 1990.

“Sugar remains bullish on strong fundamentals including news that Brazil is to use more of its sugar cane production to make ethanol,” Sucden analysts said.

Sugar cane is used to produce ethanol, a cheaper alternative to gasoline or petrol.

By Friday on LIFFE, the price of a ton of white sugar for March delivery increased to 453 dollars, from 437 dollars the previous week.

On NYBot, the price of unrefined sugar for March delivery rose to 19.63 US cents per pound on Friday, from 18.72 cents.

—AFP