July 29, 2007	Sunday	Rajab 13, 1428

LONDON, July 28: The price of oil in New York soared nearer to its record high this week, but Brent crude oil ended lower on concerns that US economic troubles could spread to the global economy and dampen energy demand.

Metals benefited early in the week as the dollar fell sharply, especially against the euro which reached an all-time high against the US unit.

But gains were largely wiped out by Friday owing to the dollar's recovery.

A strong dollar hurts demand for dollar-denominated commodities, such as metals, because they become more expensive for buyers holding weaker-performing currencies.

OIL: In a turbulent week for the oil market, prices spiked to an 11-month peak in New York amid concern over tight US energy supplies.

Crude futures in New York and London kicked off the week lower after Opec President and United Arab Emirates Energy Minister Mohammed al-Hamli expressed concern over surging prices and said the group was prepared to pump more crude oil if needed.

The Organization of the Petroleum Exporting Countries holds its next output meeting on September 11 in Vienna, the location of the cartel's headquarters.

The International Energy Agency, which has repeatedly called on Opec to pump more crude, recently raised its 2008 forecast for oil demand by 2.5 per cent to 88.2 million barrels a day.

After a weak start, prices recovered strongly on Wednesday as the US government revealed that inventories of American crude oil had fallen by 1.1 million barrels last week, prompting renewed supply jitters.

On Thursday the New York oil price hit $77.24 per barrel -- a level last seen on August 9, 2006 — as keen global demand and tight supplies fuelled speculative buying. New York's record high of $78.40 was set a year ago.

But the gains were short-lived and crude futures closed down by about a dollar Thursday owing to renewed US economic fears and a rout across global equity markets.

Thursday's selloff “was triggered by concerns the US subprime mortgage crisis could spread to other markets, Sucden analyst Andrey Kryuchenkov said.

There are concerns that petroleum demand could be impacted (dampened), he added.

By Friday, Brent North Sea crude for September delivery dropped to $75.99 a barrel on Friday, compared with $77.63 a barrel a week earlier.

New York's main oil futures contract, light sweet crude for delivery in September, gained to $76.11 a barrel, from $75.79 a barrel.

GOLD: Gold prices struck seven week highs as the dollar tumbled to an all-time low against the euro.

The precious metal hit 687.40 dollars an ounce on Tuesday -- the highest point since June 6 as the European single currency reached an historic peak of $1.3852. But the dollar's recovery towards the end of the week saw gold lose its strong gains.Gold prices continued to take their lead from the dollar movements and as the dollar gained significant strength, gold prices weakened, Barclays Capital analysts said.

On the London Bullion Market, gold dropped to $660.50 an ounce at Friday's late fixing, from $681.60 a week earlier.

SILVER: Silver prices mirrored the path taken by sister metal gold, rising to $13.50 an ounce at the start of the week, before slipping back later.

On the London Bullion Market, silver slid to $12.75 an ounce at Friday's late fixing, from $13.29 a week earlier.

PALLADIUM AND PLATINUM: Palladium and platinum prices fell in line with other precious metals. Losses to platinum were limited owing to the ongoing threat of a strike in producer South Africa.

South African platinum miners are set to strike in August unless management raises their pay by up to 12 per cent.

On the London Platinum and Palladium Market, platinum fell to 1,284 an ounce at the late fixing Friday, from $1,332 a week earlier.

Palladium declined to $362 an ounce, from $370.50.

BASE METALS: Base metals prices mostly slumped owing to concern that demand for commodities could decline as strains in the US economy spread around the world.

Global stock markets plunged late this week in the face of woes on Wall Street.

Tumbling global equity markets have a negative impact on base metals as they signal the markets expect slower economic growth, said Peter Fertig, an analyst for Dresdner Kleinwort.

UBS analyst Robin Bahr added that base metals were likely to remain under pressure. The slump in prices comes a week after lead and tin hit historic peaks owing to tight global supplies, soaring Chinese economic growth and fierce demand, according to experts.

On Friday, the price of copper for delivery in three months decreased to $7,795 a ton on the London Metal Exchange, from $8,065 a week earlier.

Three-month aluminium prices recoiled to $2,744 a ton, from $2,855.

Three-month nickel prices slid to $30,899 a ton, from $34,487.

Three-month lead prices dived to $3,035 a ton, from $3,440.

Three-month zinc prices declined to $3,470 a ton, from $3,651.

Three-month tin prices dipped only slightly to $15,499 a ton, from $15,500.

COCOA: Cocoa prices headed lower as rain fell in west Africa, easing supply concerns.

When it rains during the mini-dry season it tends to be good for crops, said Fortis analyst Jonathan Parkman.By Friday on the LIFFE, London's futures exchange, the price of cocoa for September delivery dropped to 1,018 pounds a ton, from 1,109 pounds a week earlier.

On the New York Board of Trade (NYBOT), the September contract fell to $1,937 a ton, from $2,103 the previous Friday.

COFFEE: Coffee prices struck the lowest point for almost two months in London and there was also a fall in New York.

Weighing the market down is news that Vietnam will sell 44.3 per cent more coffee during the first 10 months of the current crop year compared to the same time period last year, Sucden analyst Michael Davies said.

The price of Robusta quality coffee had been approaching fresh nine-year highs the previous week.

By Friday on the LIFFE, Robusta quality for September delivery declined to $1,784 a ton, from $1,879 one week earlier.

GRAINS AND SOYA: Wheat prices rose as a result of strong demand, while maize and soya fell.

With the growing wheat demand, that's giving us higher prices potentially for next week, said US Commodities analyst Jason Roose.

By Friday on the Chicago Board of Trade, the price of maize for September delivery declined to $3.17 a bushel, from $3.18 a week earlier.

Wheat for September delivery increased to $6.74 a bushel, from $6.16.

August-dated soyabean meal -- used in animal feed -- dropped to $8.19, from $8.50.

On the LIFFE, the price per ton of wheat for November delivery jumped to 132 pounds, from 124.50 pounds.

SUGAR: Sugar prices eased.

A global supply glut still casts a big shadow over the market,” said Davies of Sucden.

By Friday on the LIFFE, the price a ton of white sugar for October delivery retracted to $310, from $312.80 a week earlier.

On the NYBOT, the price of unrefined sugar for October delivery dipped to 10.04 US cents a pound, from 10.31 cents a week earlier.

RUBBER: The price of rubber rose slightly as poor weather conditions in Malaysia tightened supply.

There was heavy rain in the northern region and that disrupted the rubber tapping process, said an official at a rubber producing firm.

On Friday, the Malaysian Rubber Board's benchmark SMR20 increased to 206.45 US cents per kilogramme, from 205.80 US cents the previous week.— AFP