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LONDON, April 21: World oil prices slid this week on news that US refiners were rushing to convert crude into gasoline, or petrol, ahead of the driving season, but losses were limited by geopolitical concerns.
Tin enjoyed another record high, since its re-introduction to the London market in 1989, as investors seized on news of low stocks and production problems.
Many commodities received a boost from the troubled US dollar, which steered close to a historical low against the European single currency. A weak dollar increases demand for dollar-denominated commodities, such as gold, since they become cheaper for buyers using other currencies.
The euro touched $1.3637 on Friday — not far off the December 2004 historic peak of $1.3666 as currency investors were lured by the increased chances of higher eurozone interest rates, dealers said.
Many raw materials pared gains after China revealed that first-quarter economic growth came in at a blistering 11.1 per cent. The data sparked some concern that the Asian giant might increase interest rates and thus crimp its voracious demand for commodities.
OIL: Crude prices retreated as US refiners ramped up their output and offset the impact of a heavier-than-expected weekly drop in gasoline stocks.
Petrol is a critical market focus ahead of the driving season, starting next month, when many Americans hit the roads for their summer holidays.
US crude futures had slumped by 1.30 dollars on Thursday as refiners accelerated production.
Meanwhile, American gasoline reserves fell 2.7 million barrels last week, the 10th consecutive drop and heavier than forecasts for a drop of 1.9 million.
Concerns about Iran's controversial nuclear programme limited price falls.
The UN atomic watchdog said late on Wednesday that Iran, the world's fourth-biggest crude producer, had started feeding uranium gas for enrichment at a nuclear plant where it has installed more than 1,300 centrifuges.
Prompted by fears that Iran is secretly developing nuclear weapons, the UN Security Council has already imposed sanctions on the Middle Eastern nation for failing to halt uranium enrichment.
Analysts are worried that the Islamic Republic, which is the fourth-biggest global crude producer, could respond by slashing exports.
Elsewhere, the market shrugged off concerns that China's impressive economic growth during the first quarter could result in Beijing raising rates and thus reduce crude demand.
The Asian powerhouse is the world's second largest energy consumer after the United States.
Oil prices recovered slightly on Friday amid violence in Nigeria, which is the world's sixth-biggest oil exporter. Traders fear that unrest in the run-up to Nigeria's presidential elections this weekend may disrupt supplies from Africa's biggest crude-producing country.
By Friday in London, a barrel of Brent North Sea crude for delivery in June plunged to 66.30 dollars, compared with 69.16 dollars a week earlier.
In New York, a barrel of crude for delivery in May sank to $62.70 from $63.90.
GOLD: The price of gold breached $690 an ounce for the first time in eleven months owing to the weak US dollar.
Gold struck $693.99 per ounce — the highest level since May 18, 2006.
The metal pulled back following the Chinese growth data, but found further support from the troubled dollar late in the week.
Concerns about the Chinese economy may prompt some further risk reduction in the coming sessions, particularly if the dollar begins to recover, warned James Moore of TheBullionDesk.com.
On the London Bullion Market, gold prices rose to $691.40 an ounce at Friday's late fixing, from $681.75 a week earlier.
SILVER: Silver prices took the biggest hit from the strong Chinese data.
Prices stooped as low as $13.575 per ounce on Thursday, which was last seen in early April, on concerns over demand for the precious metal.
On the London Bullion Market, silver prices eased to $13.87 an ounce at Friday's late fixing, from $13.88 a week earlier.
PALLADIUM AND PLATINUM: Sister metals platinum and palladium surged higher after news that funds indexed against the metals will be launched in London and Zurich.
Exchange-traded fund products allow traders to invest money in the commodities sector, without trading on the futures market and committing themselves to the long-term delivery of the physical product.
ETF products tend to generate a sharp increase in demand by investors, which pushes up the price of the underlying physical asset.
Palladium prices reached $386 an ounce — the highest level since May 2006. Platinum rose to $1,332 an ounce, the highest point since last November.
On the London Platinum and Palladium Market, platinum increased to $1,317 an ounce at the late fixing Friday, from 1,269 a week earlier.
Palladium climbed to $382 an ounce, from $371.50.
BASE METALS: Tin prices struck a record high.—AFP
