September 17, 2006	Sunday	Sha'aban 23, 1427

LONDON, Sept 16: World oil prices extended their slump this week owing to easing supply concerns, striking their lowest levels for almost six months and causing heavy losses to metals, notably gold which hit a near three-month low.

On Friday, the Commodities Research Bureau's index of 17 commodities tumbled to 305.10 points, the lowest level since July 2005, and compared with 328.90 points the previous week.

GOLD: Gold prices fell to $570.98 per ounce on Friday -- their lowest point since June 20.

Falling oil prices triggered a resumption of short-term bearishness” for gold prices, said James Moore, an analyst for specialist website TheBullionDesk.com.

Weaker oil prices reduce the risk of inflation, in turn lessening the attractiveness of gold, which is seen as a good hedge against rising costs.

The short-term trend for gold is down. However we are not convinced that a meltdown, of the magnitude of May/June, is taking place, Barclays Capital analyst MacNeil Curry said.

Gold futures had hit $730.40 per ounce on May 12 -- the highest point for 26 years -- before plunging 26 per cent in one month to $542.45 on June 14.

On the London Bullion Market, gold prices slid to $573.60 per ounce at Friday's late fixing, from $610.00 a week earlier.

SILVER: Silver prices slumped by 13.5 per cent this week, striking $10.47 per ounce on Friday -- their lowest level for two months.

The metal could be set for a rebound, however, according to Moore.

“Substantial support is expected between 10.15 and $10.40 and should limit further slippage,” he said.

On the London Bullion Market, silver prices dropped to $10.70 per ounce at Friday's fixing, from $12.22 the previous week.

OIL: Crude oil futures plummeted to their lowest points since late March.

In London, the price of Brent North Sea crude tumbled to %61.96 per barrel on Thursday — their lowest level since March 23. New York crude hit $62.03 per barrel on Friday for the first time since March 22.

Crude futures have fallen sharply since striking record high points above $78 per barrel in July and August largely owing to adequate supplies, easing worries over Iran's nuclear programme and an absence of hurricane damage to oil installations. Prices were weighed down further this week by Opec's pledge to keep output unchanged and forecasts of weakening demand.

The International Energy Agency said on Tuesday that the hunger to consume oil products seemed to be slowing after a seven-year binge.

Meanwhile the Organization of Petroleum Exporting Countries said in a report Friday that world oil demand was weaker than expected in the first half of 2006 because increasingly efficient use of oil was limiting consumption.

Opec oil ministers had decided Monday in Vienna to maintain their oil output ceiling at a near 25-year high, but attention quickly switched to when the cartel might cut production to stem falling prices.

The IMF said on Thursday that strong US and Chinese economies as well as an array of supply issues look set to keep oil prices high next year, with markets pointing to a price of $70-75 a barrel.

RUBBER: Rubber prices rebounded on techinical factors and owing to rainfall in Asia's producing regions.

Rubber is rebounding or looking to consolidate as a repercussion of the falls in the last few weeks, Corrie MacColl analyst Rashid Ahmed said.

Prices had fallen heavily in recent weeks owing to adequate supplies.

On TOCOM, Tokyo’s commodity exchange, natural rubber for February delivery increased to 236.00 yen per kilogramme on Friday, from 219.80 yen a week earlier.

SUGAR: Sugar prices ended mixed after reaching a five-week peak in London and the highest level for three weeks in New York.

In London on Thursday, the price of white sugar reached $428.00 per ton -- the highest point since early August.

By Friday on LIFFE, the price of a ton of white sugar for October delivery fell to $412.00, from $420.00 a week earlier.

On NYBOT, the price of unrefined sugar for October delivery gained to 12.30 US cents per pound, from 11.98 cents.

COTTON: Cotton prices slid to a two-month low in New York owing to a forecast of higher world output.

On the NYBOT, the December contract fell to 52.50 US cents per pound on Friday, from 53.13 US cents a week earlier.

The Cotton Outlook Index of physical cotton eased to 58.85 US cents on Thursday, compared with 59.60 US cents a week earlier.

WOOL: Wool prices rallied slightly in leading producer Australia on strong demand, and owing to a weaker Australian dollar which led to cheaper exports.

The Australian Eastern index gained to 7.53 Australian dollars per kilo on Thursday, from 7.47 the previous week.

The British Wooltops index stood at 403 pence on Thursday, unchanged from the previous Thursday.---AFP