November 11, 2007	Sunday	Shawwal 29, 1428

LONDON, Nov 10: Crude oil prices struck new historic heights this week, surging above $98 a barrel for the first time, on fears of tight energy supplies in the United States, the world’s biggest energy user.

Gold futures came extremely close to beating its all-time record of $850 an ounce as it won support from the dollar’s record run lower against the euro and surging oil prices.

OIL: New York’s main contract, light sweet crude for December delivery, hit an historic peak of $98.62 a barrel on Wednesday on expectations that the US government would announce a large drop in American energy inventories.

In London the same day, Brent North Sea crude for December delivery struck an all-time high of $95.19.

But crude prices went on to fall as the drop in US crude stockpiles was smaller than had been expected by analysts.

“The flood of speculative cash pouring into oil has resulted in a breach of $100 a barrel very much on the cards,” Bank of Ireland analyst Paul Harris said.

Oil prices were also volatile on Thursday, initially spiking on the closure to oil platforms off the Norwegian coast and unrest in crude-producer Yemen.

But they later fell after US Federal Reserve chairman Ben Bernanke painted a gloomy picture of the US economy that fuelled speculation about a drop in demand for crude.

“Market participants worry that a further slow down in US economic growth could dent demand for energy in the world’s top consumer,” Sucden analyst Michael Davies said.

“It seems that at the moment investors are focusing on this short term outlook for the US economy, even though in the longer term global oil demand is still seen outpacing supply,” he added.

Elsewhere this week, Brazil said it had discovered huge petroleum reserves in its south that could turn the country into one of the biggest oil producers in the world.

By Friday, New York’s main oil futures contract, light sweet crude for delivery in December, jumped to $95.93 a barrel, from $94.67 a week earlier.

In London, Brent North Sea crude for December delivery advanced to 92.83 dollars a barrel, from $90.75.

PRECIOUS METALS: The price of gold reached 845.84 dollars an ounce on Wednesday to reach the highest level since 1980 and within touching distance of its all-time peak of $850.

“With this weaker dollar we will see it (gold) push through $850,” said Ben Coleman, commodities trader at Trade Index.

A struggling US unit makes commodities priced in dollars cheaper for buyers using stronger currencies.

On Friday, the euro raced to an all-time high of $1.4752.

On the London Bullion Market, gold prices soared to $831.50 an ounce at Friday’s late fixing, from $796.50 a week earlier.

Silver prices grew to $15.15 an ounce, from $14.32.

On the London Platinum and Palladium Market, platinum prices fell to $1,434 an ounce at the late fixing Friday, from $1,439 a week earlier.

Palladium prices edged up to $370 an ounce, from $369.

BASE METALS: Base metals prices were mixed, with copper especially hit by woes for the US economy, which could dent demand for commodities.

“Overall the metals have had difficulty running higher on the back of gold and oil which suggests traders are more concerned about the prospects of a slowing US economy and its impact on world growth than on any advantage the weaker dollar would bring them,” said William Adams, an analyst at BaseMetals.com.

On Friday, the price of copper for delivery in three months fell to $7,077 a ton on the London Metal Exchange, from $7,465 a week earlier.

Three-month aluminium prices rose to $2,610 a ton, from $2,590.

Three-month nickel prices increased to $32,349 a ton, from $32,175.

Three-month lead prices dropped to $3,477 a ton, from $3,690.

Three-month zinc prices dipped to $2,712 a ton, from $2,740.

Three-month tin prices rallied to $16,850 a ton, from $16,554.

COCOA: Cocoa prices fell, but losses were limited in New York owing to a weak dollar.

“The New York market continues to be showing more upside as a result of the ongoing dollar weakness,” Sucden analysts said.

By Friday on the LIFFE, London’s futures exchange, the price of cocoa for December delivery slid to 925 pounds a ton, from 954 pounds a week earlier.

On the New York Board of Trade (NYBOT), the December cocoa contract decreased to $1,935 a ton, from $1,966.

COFFEE: Coffee prices were mixed as markets tracked weather conditions in producer Vietnam and the performance of other commodities.

“London set a steady pace early on, helped by further light rains in Vietnam, slowing the harvest, but also following the rest of the commodity complex higher,” Sucden analysts said.

By Friday on the LIFFE, Robusta quality for January delivery dropped to $1,911 a ton, compared with $1,935 a week earlier.

On the NYBOT, Arabica for December delivery rose to 122.10 US cents a pound, from 119.70 cents.

SUGAR: Sugar prices rebounded, helped by record-breaking oil prices.

Sugar cane is used to produce ethanol, a cheaper biofuel alternative to gasoline, or petrol.

By Friday on the LIFFE, the price per ton of white sugar for December delivery gained to 285.60 pounds, from 282.50 pounds a week earlier.

On the NYBOT, the price of unrefined sugar for March delivery advanced to 10.06 US cents a pound, from 9.74 cents.

GRAINS AND SOYA: Maize and soya prices rose on the back of soaring oil prices, while wheat fell on profit-taking.

Demand for maize and soya rose, lifting prices, as the commodities are used in the production of biofuels which are cheaper than crude.

By Friday on the Chicago Board of Trade, the price of maize for December delivery climbed to $3.84 a bushel, from $3.76 a week earlier.

Wheat for December delivery decreased to $7.47 a bushel, from $7.83.

January-dated soyabean meal -- used in animal feed -- jumped to $10.23, from $10.17.

On the LIFFE, the price per ton of wheat for May delivery dropped to 158.25 pounds, from 162.00.

RUBBER: The price of rubber rose strongly as monsoon rains swamped producer countries in Asia, dampening supplies.

On Friday, the Malaysian Rubber Board’s benchmark SMR20 rose to 244.00 US cents per kilogramme, from 236.85 cents last week.

WOOL: The Australian wool market finished 0.9-per cent higher on average, helped by buying from China and Italy, the Australian Wool Industries Secretariat said.

The Eastern Index gained to 9.59 Australian dollars a kilo, from 9.53 Australian dollars a week earlier.—AFP