April 08, 2007	Sunday	Rabi-ul-Awwal 19, 2007

LONDON, April 7: World oil prices jumped to almost $70 a barrel during a shortened trading week, owing to heightened tensions over Iran’s capture of 15 British sailors ahead of their release.

But the strong gains were later erased as profit-taking set in ahead of a long holiday weekend to mark Easter. Elsewhere, base metals struck record highs on dwindling stockpiles.

Most global financial markets were closing on Thursday in preparation for Easter.

OIL: Oil prices hit a seven-month peak of $69.58 a barrel in London on Monday as a diplomatic crisis between Britain and Iran, the world's fourth biggest crude producer, sparked fears that the Islamic republic could disrupt exports.

Prices fell later in the week, however, after Iranian President Mahmoud Ahmadinejad allowed 15 British sailors, held by Tehran for almost a fortnight for allegedly entering Iranian waters, to fly home.

Prices were also weighed down by the release of four foreign oil workers abducted last week in Nigeria, Africa's biggest crude producer.

Crude futures enjoyed a brief rally towards the end of the week on news that US gasoline, or petrol, reserves plummeted by five million barrels last week -- far more than market expectations for a drop of just 300,000 barrels.

Motor fuel stocks are being closely watched before the US driving season, which starts next month, when many Americans hit the roads for their summer holidays.

A barrel of Brent North Sea crude for delivery in May fell to $68.10 a barrel, from $68.64 the previous Friday.

In New York, a barrel of crude for delivery in May dropped to $64.14 a barrel from $66.45.

GOLD: The price of gold struck a one-month high, benefiting from increased tensions over Iran's detention of the British sailors ahead of their release.

Gold reached $675.79 an ounce -- the highest level since March 1.

Investors are piling into gold amid geopolitical concerns, since the yellow metal is seen as a safe store of value in times of political tension and high inflation.

Elsewhere, the average price of gold in 2007 is set to break records because of interest from investors amid geopolitical uncertainty, the precious metals consultancy GFMS said.

“It's looking pretty certain that the record in terms of the annual average, $614.50 back in 1980, is going to fall this year,” GFMS chairman Philip Klapwijk said as the independent research group published its annual Gold Survey.

Since the start of 2007 gold has traded at an average of $650 an ounce.

On the London Bullion Market, gold prices jumped to $673.50 an ounce at Thursday's late fixing, from $661.75 the previous Friday.

SILVER: Silver prices also hit a one-month high, reaching $13.66 an ounce.

“Silver derived some benefit from stronger base metals, but also tracked the gold moves reasonably closely,” BNP Paribas analyst David Thurtell said.

Silver is both a precious and industrial metal, as it is used by the jewellery and photographic sectors.

On the London Bullion Market, silver prices gained to $13.58 an ounce at Thursday's late fixing, from $13.35 the previous Friday.

PALLADIUM AND PLATINUM: Platinum ended the week higher, while sister metal palladium eased.Platinum “edged higher as a result of the break outs in gold and silver,” said Moore of TheBullionDesk.com.

On the London Platinum and Palladium Market, platinum increased to $1,251 an ounce at the late fixing Thursday, from $1,244 the previous Friday.

Palladium dipped to $350.50 an ounce, from $351.75.

BASE METALS: Nickel and lead prices struck all-time highs on weak stockpiles of the base metals, while copper reached the highest level for five months.

Nickel, used to help prevent corrosion, struck a record high of $50,000 a tonne in London trading.

It was the highest reading for nickel since the start of its quotation on the LME in 1979.

A ton of lead, meanwhile, struck an historic high of $2,015.

On Thursday, three-month copper prices surged to $7,411 a ton on the LME, from $6,859.50 the previous Friday. Three-month aluminium prices rallied to $2,840 from $2,803. Three-month nickel prices soared to $49,505 a ton from $43,795. Three-month lead prices jumped to $1,990 a ton from $1,925.

Three-month zinc prices climbed to $3,401 a ton from $3,285.

Three-month tin prices increased to $14,150 a ton from $13,650.

SUGAR: Sugar prices slid to a fresh 19-month low of 9.77 US cents a pound in New York.

By Thursday on the LIFFE, the price per tonne of white sugar for August delivery fell to $314.80, compared with 317 dollars the previous Friday.

On the NYBOT, the price of unrefined sugar for July delivery decreased to 9.87 US cents a pound, from 9.92 cents a week earlier.

COFFEE: Coffee prices rebounded after a weak start.

“Coffee futures finished higher, underpinned by fund buying,” Sucden analyst Davies said.

By Thursday on the LIFFE, Robusta quality for May delivery rose to $1,542 a ton, from $1,513 the previous Friday.—AFP