LONDON: World oil prices tumbled close to six-year lows this week, as record-high US crude inventories deepened worries over the global supply glut.

In another blow, official data showed Friday that the US economy slowed sharply in the fourth quarter of 2014, sparking fears over demand in the United States, which is the world’s biggest oil consumer.

OIL: New York crude oil dived Thursday to $43.58 per barrel, striking a nadir last seen on March 12, 2009.

Prices plunged after official data showed Wednesday that US crude stockpiles surged by 8.9 million barrels to 406.7m in the week to January 23.

The overall level of stockpiles was the highest since the US government began keeping weekly records in 1982.

Meanwhile, data showed Friday that US gross domestic product (GDP) grew at an annual rate of 2.6 per cent in the fourth quarter. That marked a steep decline from the brisk 5pc growth in the third quarter. In reaction to the US inventories data, meanwhile, WTI dropped $1.78 and Brent lost $1.13 on Wednesday.

Sucden analyst Myrto Sokou added that the weekly US energy report “indicated a prolonged deterioration in oil fundamentals” of supply and demand.

The oil market has lost more than half its value since June last year when crude was sitting at more than $100 a barrel due to a supply glut, boosted largely by robust US shale oil production, and weak global demand.

The problem was exacerbated in November after the OPEC oil cartel insisted that it would maintain output levels despite plunging prices. The 12-nation group pumps about 30pc of global crude.

By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in March edged up to $49.65 a barrel from $49.55 one week earlier.

On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for March dipped to $45.35 a barrel compared with $46.91.

PRECIOUS METALS: Gold fell sharply as the European Central Bank’s recent stimulus announcement eclipsed the impact of the Greek election, analysts said.

By Friday on the London Bullion Market, the price of gold slid to $1,260.25 an ounce from $1,294.75 a week earlier. Silver sank to $16.92 an ounce from $18.23.

On the London Platinum and Palladium Market, platinum fell to $1,221 an ounce from $1,274.

Palladium advanced to $775 an ounce from $767.

BASE METALS: Copper slumped to $5,339.50 — the lowest level since July 22, 2009 — as worries intensified over the state of Chinese demand, dealers said.

By Friday on the London Metal Exchange, copper for delivery in three months slid to $5,468 a tonne from $5,559 the previous week.

Three-month aluminium rose to $1,863.50 a tonne from $1,835.50. Three-month lead was unchanged at $1,845 per tonne. Three-month tin declined to $19,250 a tonne from $19,440. Three-month nickel firmed to $14,720 a tonne from $14,500.

COCOA: Cocoa futures hit a one-year low in New York and a one-month trough in London. Sentiment was dented by global demand concerns for the commodity that is mostly used to make chocolate.

By Friday on LIFFE, London’s futures exchange, cocoa for delivery in March dropped to £1,917 a tonne from £1,939 a week earlier.

On the ICE Futures US exchange, cocoa for March slid to $2,707 a tonne from $2,794.

SUGAR: Prices were pushed lower by abundant global supplies.

By Friday on LIFFE, the price of a tonne of white sugar for delivery in March slid to $382.40 from $406.50 a week earlier. On ICE Futures US, the price of unrefined sugar for March fell to 14.77 US cents a pound from 15.75 US cents.

COFFEE: New York prices slid to their weakest level since July 2014, rocked by forecasts of rainy weather in key producer Brazil.

By Friday on ICE Futures US, Arabica for delivery in March dropped to 159.40 US cents a pound from 160.35 cents a week earlier. On LIFFE, Robusta for March fell to $1,934 a tonne from $1,938.

RUBBER: Kuala Lumpur prices retreated due to weak oil prices and a lack of interest from buyers. Crude oil is used in the production of synthetic rubber.

The Malaysian Rubber Board’s benchmark SMR20 on Friday fell to 138.45 US cents a kilo from 140.60 US cents the previous week.

Published in Dawn, February 1st, 2015

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