June 24, 2007	Sunday	Jamadi-us-Sani 08, 1428

LONDON, June 23: Crude oil prices reached their highest levels for nine months this week, before paring gains on news of rising energy stockpiles in the United States.

Base metal lead enjoyed yet another record peak as traders fretted over low global reserves.

The price of coffee in London, meanwhile, held close to a nine-year peak amid production problems in key exporter Vietnam.

OIL: Oil prices endured a volatile week after shooting to nine-month peaks on Monday, before ending on a mixed note.

The strong gains were won mostly on concerns about tight gasoline supplies in the United States and unrest in Nigeria.

In London, Brent North Sea crude for August delivery reached $72.25 per barrel, a price last seen on August 28, 2006.

Prices then began to slip on Wednesday after the US Department of Energy (DoE) said that crude oil stockpiles grew by 6.9 million barrels in the week ended June 15. Most analysts had expected a drop of 50,000 barrels.

Oil prices fell back following a rise in US crude inventories, confirmed Barclays Capital analyst Kevin Norrish.

The DoE meanwhile added that stockpiles of US gasoline jumped by 1.8 million barrels last week, beating the market consensus forecast of 1.2 million barrels.

Traders are closely following the supply of gasoline amid peak demand for motor fuel during the ongoing US summer driving season when Americans throng highways en route to their holiday destinations.

As the trading week neared its close, the market became less concerned therefore, despite possible supply disruptions owing to a national strike in Nigeria -- the world's sixth biggest crude exporter.

Nigeria's general strike entered its third day Friday after overnight talks between labour unions and government ended in deadlock.

Brent North Sea crude for August delivery nonetheless slid to $70.96 a barrel on Friday, from $71.84 a barrel a week earlier.

New York's main oil futures contract, light sweet crude for delivery in August, firmed to $69.20 a barrel however, from $67.70 a barrel.

GOLD: The price of gold eased, tracking fluctuations in the US dollar.

Amid uncertain sentiment, gold prices have taken their cue from dollar movements, Barclays Capital analysts said.

A strengthening dollar makes dollar-denominated commodities, such as gold, more expensive for buyers holding weaker currencies.

On the London Bullion Market, gold dropped to $652.85 an ounce at Friday's late fixing, from $653.10 a week earlier.

SILVER: Silver prices advanced.

Silver held comfortably above $13, despite selling pressure, said James Moore, analyst at specialist metals website TheBullionDesk.com.

PALLADIUM AND PLATINUM: The sister metals both shot higher, with palladium striking a one-month high amid the threat of industrial action in key producer South Africa.

Anglo Platinum, the world's biggest platinum producer, has failed thus far to meet wage demands of union leaders there.

BASE METALS: Base metal prices had a mixed week, but lead smashed another historic high.

Lead was lifted by low inventories (and) pushed higher by fund buying, said Sucden analyst Michael Davies.

Lead, which is used extensively for batteries and in the automotive industry, hit a record $2,550 per ton on Thursday.

The prices of nickel, aluminium, zinc and tin declined as many traders began to question the strength of demand from economic powerhouse China.

GRAINS AND SOYA: Grains and soya prices beat a retreat, with wheat falling away from a recent eleven-year pinnacle.

Wheat had struck $6.07 a bushel in Chicago last week -- the highest level since 1996 -- as producers Ukraine and Russia endured dry weather which hampered output.

COFFEE: Coffee prices were robust, trading around their highest level since 1998 in London.

The market remains well supported by tight Robusta supply from Vietnam and rising demand, said Davies at the Sucden brokerage.

On the LIFFE, London's futures exchange, Robusta prices had leapt to $1,940 a ton on June 12 -- which was last seen nine years ago.

Coffee prices in London have surged amid market worries over lower exports from Vietnam, which is the world's second-biggest coffee producer after Brazil.

By Friday on the LIFFE, Robusta quality for September delivery leapt to $1,915 a ton, from $1,853 a week for the July contract one week earlier.On the NYBOT, Arabica for September delivery added to 115.85 US cents a pound, from 115.40 cents.

COCOA: Cocoa prices drifted lower as traders took profits from gains made the previous week.

On the New York Board of Trade (NYBOT), the September contract slipped to $1,950 a ton, compared to $1,952 for the July contract.

SUGAR: Sugar prices rebounded from recent losses.

London white sugar futures gained ground in light volume, underpinned by trade and speculative short covering, added Sucden's Davies.

RUBBER: The price of rubber fell as production rose on improving weather conditions, traders said.

On Friday, the Malaysian Rubber Board's benchmark SMR20 declined to 211.85 US cents per kilogramme, compared with 214.65 the previous week.

—AFP