July 01, 2007	Sunday	Jamadi-us-Sani 15, 1428

LONDON, June 30: World oil prices hit ten-month peaks this week on US supply woes, while cocoa soared as investors reacted to unrest in major producer Ivory Coast.Lead prices, which were lifted by low global inventories, rocketed to a fresh record high above the price for the traditionally more expensive base metal aluminium.

OIL: World oil prices rallied, with New York crude trading above $70 a barrel for the first time since late August 2006 on supply concerns in the United States, the world's biggest consumer of energy.

On Friday, New York crude struck $70.75 — the highest level since August 28.

“It looks like the US is not out of the woods yet” regarding supplies, said Mitsubishi Corp analyst Tony Nunan.

Crude prices had closed more than a dollar higher on Wednesday after the US Department of Energy (DoE) reported that American gasoline (petrol) stockpiles fell by 700,000 barrels to 202.6 million barrels in the week ending June 22.

That surprised the market, as analysts had expected a gain of 1.0 million barrels.

Gasoline reserves are in focus because of the US summer driving season when demand typically peaks as many Americans take to the roads for their annual vacations.

US gasoline inventories are running well below the lower end of the average range for this time of year, the DoE added in its weekly market update.

World oil prices had begun the week lower, as traders expressed relief at the end of a general strike in Nigeria that had threatened exports from the sixth-biggest crude producer in the world.

Nigerians returned to work last Monday, two days after the country's two main trade unions ended a four-day general strike that had paralysed economic and commercial activities.

Elsewhere, analysts said this week that high international oil prices may have forced China to postpone filling at least one of its much-anticipated strategic oil reserves.

China, the world's second-largest importer of oil, has seen its demand for energy rocket as a result of its explosive economic growth, which has been double-digit for four consecutive years.

The Middle East has traditionally been China's main source of oil, but the country has sought energy elsewhere since the US-led invasion of Iraq in 2003, which has fuelled unrest across the region.

Brent North Sea crude for August delivery rose to $71.00 a barrel on Friday, from $70.96 a barrel a week earlier.

New York's main oil futures contract, light sweet crude for delivery in August, climbed to $70.25 a barrel, from $69.20 a barrel.

GOLD: The price of gold touched a three-month low of $639.50 an ounce on Tuesday — a level last seen on March 14.

“Some light profit taking has been seen,” noted analyst James Moore at specialist metals website TheBullionDesk.com.

He added: “As we move into the (northern hemisphere) summer, a time when physical buying traditionally slows, gold will remain vulnerable to further bouts of weakness.”Rising oil prices meanwhile failed to boost gold, which normally benefits because the precious metal is seen as a safe store of value in times of high inflation.

On the London Bullion Market, gold dropped to $650.50 an ounce at Friday's late fixing, from $652.85 a week earlier.

SILVER: Silver prices shed almost 5.0 per cent in value, mirroring gold's losses. The metal sank as low as $12.13 per ounce on Tuesday, marking the lowest point since early January.

Silver is both a precious and an industrial metal, used in the production of jewellery, and in the photographic and dentistry sectors.

On the London Bullion Market, silver slid to $12.54 an ounce at Friday's late fixing, from $13.15 a week earlier.

PALLADIUM AND PLATINUM: The sister metals both fell in the wake of gold and silver, but losses were capped by looming industrial action in key producer South Africa.

However, the prices of palladium and platinum “remain underpinned by ongoing wage negotiations in South Africa,” said Barclays Capital analysts.

On the London Platinum and Palladium Market, platinum fell to $1,273 an ounce at the late fixing Friday, from $1,301 a week earlier.

Palladium sank to $365 an ounce, from $375.

BASE METALS: Lead prices surged to another historic peak.

Lead, which is used extensively for batteries and in the automotive industry, hit a record $2,745 per ton on Tuesday.

Surprisingly, the metal is now more expensive than aluminium.

Sucden analyst Michael Davies added: “Although current fundamentals (of keen demand and low supplies) are supportive to lead prices, it is speculators who drive lead's price to record highs.

On Friday, the price of copper for delivery in three months rose to $7,520 a ton on the London Metal Exchange, from $7,470 a week earlier.

Three-month aluminium prices climbed to $2,736 a ton, from $2,709.

Three-month nickel prices slid to $35,810 a ton, from $37,550.

Three-month lead prices leapt to $2,645 a ton, from $2,353.

Three-month zinc prices declined to $3,326 a ton, from $3,524.

Three-month tin prices firmed to $13,900 a ton, from $13,875.

COCOA: Cocoa prices leapt to four-year peaks after an attack on the plane of Ivory Coast Prime Minister Guillaume Soro, seen as a heavy blow to the divided country's fragile peace process.

Ivory Coast is the world's biggest producer of cocoa for the global chocolate industry. The west African nation produces 40 per cent of the world's cocoa, which makes up 35 per cent of Ivorian exports.

London cocoa prices surged on Friday to 1,118 pounds per ton -- last seen September 2003 -- while New York cocoa hit a four-and-a-half year high of $2,066 per ton.

Friday's attack killed at least four people, but not the prime minister.

By Friday on the LIFFE, the price of cocoa for September delivery rose to 1,115 pounds a ton, compared to 1,060 pounds a week earlier.

On the New York Board of Trade (NYBOT), the September contract jumped to $2,056 a ton, compared to $1,950 the previous Friday.

COFFEE: Coffee prices fell as investors took profits after the market hit a nine-year peak in London the previous week.

However, despite the modest losses, Sucden analyst Michael Davies noted that the market remained “well supported.”In recent weeks, London coffee prices have surged amid market worries over lower exports from Vietnam, which is the world's second-biggest coffee producer after Brazil.

GRAINS AND SOYA: Grains and soya prices saw mixed fortunes, while next week the focus was expected to fall on weather conditions in major producing nations.

“For next week, it'll all be up to the weather again,” said Allendale analyst Joe Victor.

“It's getting to a period of time when traders are not only looking to the amount of precipitation but also making sure there is no heat that would come in here and damage pollination for corn.”By Friday on the Chicago Board of Trade, the price of maize for September delivery sank to $3.41 a bushel, from 3.76 dollars a week earlier.

Wheat for September delivery rose to $6.29 a bushel, from $6.05.

August-dated soyabean meal -- used in animal feed -- increased to $8.66, from $8.04.

On the LIFFE, London's futures exchange, the price per ton of wheat for November delivery advanced to 117.50 pounds, from 112.75 pounds.

SUGAR: Sugar prices were firm after recent losses that were triggered by an abundance of sugar, traders said.

According to Davies, the market found some support from a wave of speculative buying.

By Friday on the LIFFE, the price per ton of white sugar for August delivery stood at $320.50, from $319.40 a week earlier.

On the NYBOT, the price of unrefined sugar for July delivery firmed to 9.17 US cents a pound, from 9.15 cents.

RUBBER: The price of rubber dropped on improved supplies from key producing countries.

The reasons are mainly due to the raw material coming in, since the weather is good so there is improved supply of raw material from Thailand and Vietnam, said an official with a rubber producing company.

On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 208.38 US cents per kilogramme, compared with 213.08 US cents last week.

WOOL: The price of wool extended losses in major producer Australia.

The Australian wool market finished the week 2.9pc lower on average, with the Eastern Index closing at 9.31 Australian dollars a kilogramme.—AFP