LONDON: World oil prices sank this week as traders eyed a possible Iran nuclear energy deal that could ease sanctions on the crude producer and potentially add to global oversupply.

OIL: Crude futures fell heavily amid ongoing Iran nuclear talks, with the market also weighed down by plentiful petroleum supplies.

With the world’s fourth biggest oil and second biggest gas reserves, the energy industry is the cornerstone of Iran’s economy, but it has been hit hard by the American and European embargo imposed since 2012.

Oil has collapsed by as much as 60 per cent in value since June on the back of a burgeoning supply glut.

By Thursday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in May plunged to $54.80 per barrel from $57.81 a week earlier.

On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for May slid to $49.29 compared with $50.16 a week earlier.

PRECIOUS METALS: Gold climbed as investors sought the safety of the precious metal.

Gold is traditionally regarded by investors as a safe bet in times of geopolitical and economic uncertainty. By Thursday on the London Bullion Market, the price of gold firmed to $1,198.50 an ounce from $1,195.75 a week earlier.

Silver weakened to $16.84 an ounce from $17.14.

On the London Platinum and Palladium Market, platinum gained ground to stand at $1,154 an ounce from $1,138. Palladium increased to $751 an ounce from $748.

BASE METALS: Nickel and tin tumbled close to six-year low points on oversupply woes and demand fears in China and Europe.

Tin prices sank Wednesday to a near six-year trough at $16,389.50 per tonne, while nickel hit a similar low at $12,310 a tonne.

By Thursday on the London Metal Exchange, copper for delivery in three months declined to $5,993 a tonne from $6,069 a week earlier.

Three-month aluminium eased to $1,774.50 per tonne from $1,778.50. Three-month lead advanced to $1,870 a tonne from $1,829. Three-month tin tanked to $16,750 a tonne from $17,285. Three-month nickel slid to $12,935 a tonne from $13,375. Three-month zinc edged higher to $2,107.50 a tonne from $2,081.50.

SUGAR: London prices sank close to a six-year trough at $355, after similar recent falls in New York, as the market was shaken once again by the weak Brazilian Real currency and plentiful stockpiles.

By Thursday on LIFFE, London’s futures exchange, a tonne of white sugar for delivery in May fell to $361.10 from $362.90 a week earlier.

On ICE Futures US, unrefined sugar for May rose to 12.46 US cents a pound from 12.31 US cents.

COCOA: The commodity hit multi-month lows on expectations of rising output from West Africa — which includes top global producers Ghana and Ivory Coast — but finished the week on a stable note.

By Thursday on LIFFE, cocoa for delivery in May climbed to 1,931 pounds a tonne from 1,927 pounds a week earlier. On the ICE Futures US exchange, cocoa for May eased to $2,749 a tonne from $2,750 the previous week.

COFFEE: Prices drifted lower in subdued deals before the Easter break.

By Thursday on ICE Futures, Arabica for delivery in May dipped to 134.80 US cents a pound from 139.90 cents a week earlier. On LIFFE, Robusta for May weakened to $1,751 a tonne from $1,804.

Published in Dawn, April 5th, 2015

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