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LONDON, April 14: The price of crude oil reached the highest level since September in London trading this week as the market worried about tight US stockpiles of motor fuel heading into the peak demand season.
Palladium was an unlikely star performer among precious metals, with its price approaching a one-year high.
Lead and nickel notched up further historic records amid dwindling stockpiles.
Friday's prices are compared with those recorded late on Thursday of the previous week. Markets had shut on Friday, April 6 owing to the Easter festivities.
OIL: The price of Brent North Sea crude struck almost $70 on supply concerns, ending the week positively after a slump on Monday.
Brent hit a seven-month high of $69.59 a barrel Friday on concerns that crude oil supplies might be insufficient to meet demand.
New York's main oil futures contract, light sweet crude for delivery in May, breached $64 but ended the week lower.
All eyes are on the health of US gasoline stockpiles, which are a crucial focus for the market ahead of the US driving season.
The peak-demand season for motor fuel starts next month and sees many Americans hit the roads for their summer vacations.
Inventories of US gasoline, or petrol, plunged by 5.5 million barrels to 199.7 million in the week to April 6, the US Department of Energy reported on Wednesday.
Analysts had forecast a lighter drop of 1.4 million barrels.
People are looking at the strong demand for gasoline in the US, said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures.
Emori added that gasoline demand in the US market was 1.9 per cent higher than a year ago.
The gasoline inventories drawdown is too fast and much higher than last year he noted.
Meanwhile on Thursday, the International Energy Agency warned that the Opec oil producers' group might have cut its production too much, with insufficient current output eroding world stock levels.The 12-member Organization of Petroleum Exporting Countries decided to cut its production twice at the end of last year to support prices that were falling at the time.
Crude futures meanwhile ended the week strongly after slumping on Monday.
The New York contract had dived $2.77 and Brent shed $1.28 on Monday, as investors banked profits in light Easter trade.
However, they began rebounding Tuesday as key crude producer Iran again tested Western nerves.
Iran, the world's fourth biggest producer of crude, on Tuesday pledged to further expand its nuclear drive after announcing that its activities had entered an industrial phase, sparking new criticism from the West and renewed calls for negotiation.
Iran's defiance of Western calls for it to suspend enrichment have already earned it two sets of UN sanctions but Tehran appears in no mood to halt the sensitive process.
There are concerns that Iran could disrupt its oil exports should it be hit harder.
By Friday in London, a barrel of Brent North Sea crude for delivery in May rose to $69.16, from $68.10 on Thursday of the previous week.
In New York, a barrel of crude for delivery in May dipped to $63.90 from $64.14.
PALLADIUM AND PLATINUM: Palladium prices reached $374 an ounce -- the highest level since mid-May 2006.
Palladium is rising on technical factors more than anything else, UBS analyst John Reade said.
It's not driven by underlying fundamentals because it's in oversupply,”Standard Chartered analyst Helen Henton said.
Platinum, meanwhile, rose to $1,273.50 an ounce, the highest point since November.
On the London Platinum and Palladium Market, platinum increased to $1,269 an ounce at the late fixing Friday, from $1,251 on Thursday of the previous week.
Palladium climbed to $371.50 an ounce, from $350.50.
GOLD: The price of gold broke through $680 an ounce, helped by a weaker dollar and rise in oil prices.
A struggling dollar increases demand for gold since it becomes cheaper for buyers using other currencies.
Gold, meanwhile, is seen as a safe store of value in times of high inflation, which is often fueled by oil price increases.
On the London Bullion Market, gold prices rose to $681.75 an ounce at Friday's late fixing, from $673.50 on Thursday of the previous week.
SILVER: Silver prices rallied in the wake of gold, briefly going above $14.0 an ounce.
The successful clearance should enable a swift rally towards $14.65 said James Moore of TheBullionDesk.com.
On the London Bullion Market, silver prices gained to $13.88 an ounce at Friday's late fixing, from $13.58 on Thursday of the previous week.
BASE METALS: Base metals jumped higher, with new records for lead and nickel amid concerns over low stockpiles and fierce demand, but pared gains towards the end of the week on profit-taking.
Base metals prices are firmer ... (and) inventory drawdowns across the board are supportive, Barclays Capital analysts said.
Nickel, used to help prevent corrosion, struck a record high of $50,150 a ton in London trading. It was the highest reading since the start of nickel's quotation on the London Metal Exchange (LME) in 1979.
A ton of lead, meanwhile, also hit an historic high of $2,045.
Copper for three-month delivery on the London Metal Exchange (LME) rose to $7,970 per ton -- the highest reading since September last year.
Copper inventories generally stand below the long-term trend in the second quarter. This is one reason for the current price support, Calyon analyst Michael Widmer said.
In addition, Chinese imports will continue to grow strongly.Copper is used primarily in plumbing and the manufacture of electrical cables.
On Friday, three-month copper prices surged to $7,800.50 a ton on the LME, from $7,411 on Thursday of the previous week.
Three-month aluminium prices slipped to $2,805.50 a ton from $2,840.
Three-month nickel prices jumped to $49,900 a ton from $49,505.
Three-month lead prices advanced to $2,025 a ton from $1,990.
Three-month zinc prices climbed to $3,505.5 a ton from $3,401.
Three-month tin prices increased to $14,350 a ton from $14,150.
GRAINS AND SOYA: Soya prices fell, while grains advanced as the market focused on weather conditions.
By Friday on the Chicago Board of Trade, the price of wheat for May delivery gained to $4.83 a bushel, from $4.45 on Thursday of the previous week.
Maize for May delivery rose to $3.69 a bushel, from $3.66.
May-dated soyabean meal -- used in animal feed -- dropped to $7.45, from $7.61.
On the LIFFE, London's futures exchange, the price per ton of wheat for May delivery jumped to 100.00 pounds, compared with 87.95 pounds for wheat for November. The November contract had been the most traded contract the previous week.
COFFEE: Coffee prices rose on buoyant investor sentiment.
“London is currently being supported by New York Arabica coffee as current US market sentiment suggests that coffee prices are bottoming out after recent weakness,” Sucden analyst Michael Davies said.
By Friday on the LIFFE, Robusta quality for May delivery rose to $1,579 a ton, from $1,542 on Thursday of the previous week.
On the NYBOT, Arabica for May delivery increased to 112.95 US cents a pound, from 111.25 cents.
COCOA: Cocoa prices fell further as dealers cashed in their profits, but losses were capped by supply concerns.
Fundamentally the outlook for cocoa remains positive on the back of strong demand while global supplies are tight, Davies said.
Concern remains about dry conditions in West African growing regions, he added.
By Friday on the LIFFE, the price of cocoa for May delivery dropped to 1,002 pounds a ton, from 1,038 pounds on Thursday of the previous week.
On the New York Board of Trade (NYBOT), the May contract fell to $1,865 a ton, from $1,914.
SUGAR: Sugar prices rebounded in London on strong trade buying ahead of the expiry of May's contract on Friday.
By Friday on the LIFFE, the price per ton of white sugar for August delivery advanced to $325.50, compared with $314.80 on Thursday of the previous week.
On the NYBOT, the price of unrefined sugar for July delivery increased to 9.99 US cents a pound, from 9.87 cents.—AFP
