LONDON, Nov 17: World oil prices slid from historic heights close to 100 dollars a barrel this week on easing supply concerns.
Most metals futures also fell as the dollar stabilised against the euro.
OIL: Crude futures slumped further from all-time highs of $98.62 in New York and $95.19 in London as Opec and the International Energy Agency (IEA) downgraded their forecasts for global oil demand.
Prices were also hit late in the week by news of a surprise increase to US energy stockpiles. Losses were limited after Opec ruled out an imminent hike to crude output.
On Thursday, the Organization of Petroleum Exporting Countries lowered its estimate for world oil demand growth in 2007, citing a late winter and high gasoline prices in North America that appear to be reducing consumption.
The cartel, which produces about 40 per cent of the world’s crude, estimated demand would fall by 100,000 barrels per day in the fourth quarter this year and by 30,000 barrels per day in 2008.
Earlier in the week the IEA, which monitors energy policies in developed countries, lowered its global oil demand forecast for fourth quarter 2007, citing weaker economic activity in the United States, and pointed to an increase of 410,000 barrels a day in Opec output in October.
There are... strong indications that high prices are depressing demand, the agency said in its monthly oil report, which together with signs of higher output from Saudi Arabia, Iraq and Nigeria, have capped further price gains. Meanwhile oil prices were further weighed on by government data out of the United States which showed that domestic stockpiles of crude had jumped by 2.8 million barrels to 314.7 million in the week ended November 9.
By Friday, New York’s main oil futures contract, light sweet crude for delivery in December, fell to $95.13 a barrel, from $95.93 a week earlier.
In London, Brent North Sea crude for January delivery slid to $91.62 a barrel, from $92.83 for the December contract.
PRECIOUS METALS: Gold and silver prices dropped further from 27-year highs on profit-taking as the dollar steadied.
Signs that the euro/dollar has repeatedly repelled attempts to push above 1.47 (dollars) appears to have hurt sentiment, BNP Paribas analyst David Thurtell said.
The previous week, the price of gold hit $845.84 an ounce to reach the highest level since 1980 and within touching distance of its all-time peak of $850.
Silver had struck $16.22 an ounce — last achieved in 1980.
On the London Bullion Market, gold prices plunged to $789.75 an ounce at Friday’s late fixing, from $831.50 a week earlier.
Silver prices dropped to $14.45 an ounce, from $15.15.
On the London Platinum and Palladium Market, platinum prices rallied to $1,450 an ounce at the late fixing Friday, from $1,434 a week earlier.
Palladium prices slipped to $366 an ounce, from $370.
BASE METALS: Base metals prices declined with the exception of tin, which struck a record high of $17,575 a ton.Tin extended recent gains... as concerns over future supply spurred further buying interest, Barclays Capital analysts said.
On Friday, the price of copper for delivery in three months fell to $6,875 a ton on the London Metal Exchange, from $7,077 a week earlier.
Three-month aluminium prices dropped to $2,550 a ton, from $2,610.
Three-month nickel prices decreased to $31,400 a ton, from $32,349.
Three-month lead prices slid to $3,340 a ton, from $3,477.
Three-month zinc prices tumbled to $2,510 a ton, from $2,712.
Three-month tin prices rallied to $17,350 a ton, from $16,850.
COCOA: Cocoa prices rose in London as the British pound fell strongly against the dollar.
This made the sterling-denominated commodity cheaper for buyers paying in dollars.
COFFEE: Coffee prices climbed in New York.
The Arabica (coffee) continues to strengthen and by our reckoning will continue to do so, Sucden analysts said.
By Friday on the LIFFE, Robusta quality for January delivery fell to $1,897 a ton, compared with $1,911 a week earlier.
SUGAR: Sugar prices rose in London on losses for the British pound.
By Friday on the LIFFE, the price per ton of white sugar for March delivery gained to £287.30, from £285.60 for the December contract a week earlier.
RUBBER: The price of rubber dropped. Supplies remain tight with the prevailing wet weather, said an official at a rubber-producing firm.
On Friday, the Malaysian Rubber Board’s benchmark SMR20 dropped to 230.25 US cents per kilogramme, from 244.00 cents last week.
WOOL: The Australian wool market finished 2.1 per cent higher on average, with Chinese buyers dominant as the weaker Australian dollar made the commodity less expensive for overseas buyers, the Australian Wool Industries Secretariat said.
The market opened very strongly after last week’s solid close and a 3.9 per cent depreciation in the US exchange rate, it added.—AFP
