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LONDON, June 28: Oil prices hit fresh record highs above $142 this week as a high-level energy summit between consumers and producers in Jeddah, Saudi Arabia, failed to dampen the red-hot market.
OIL: Oil prices jumped to record high levels above $142 on Friday as the US currency weakened further and stock markets tumbled at the end of a rollercoaster week for investors.New York light sweet crude struck a historic peak of $142.26 a barrel and Brent North Sea crude reached an all-time high of $142.13.
Crude oil futures made fresh record highs, with higher oil prices fuelling inflationary fears and thus hurting stock markets, which in turn triggered a further rally in commodities as investors seek better returns, Sucden analyst Michael Davies said in London.
Prices continued to be buoyed by the dollar, as the greenback continues its free fall descent this week, he added.
Opec’s president on Thursday predicted that oil prices could reach 170 dollars this year owing to a weak dollar and geopolitical unrest.
Crude futures crossed 140 dollars for the first time on Thursday following the price forecast made by Opec chief, Algerian Energy Minister Chakib Khelil.
The cost of oil has doubled in a year, with consumers blaming insufficient output from the Organization of Petroleum Exporting Countries.
However Opec, which produces 40 percent of the world’s oil, argues that speculators are responsible for pushing up prices in reaction to a falling dollar and tensions in oil-producing countries, such as Iran, Iraq and Nigeria.
A weak US currency makes oil priced in dollars cheaper for foreign buyers, thus pushing up demand for the commodity.
In a volatile week, crude prices had closed down $3.50 on Wednesday after official data revealed an unexpected rise in stockpiles in the US, the world’s biggest energy consumer.
Prices had risen earlier in the week after disappointment that the Jeddah meeting of oil producers and consumers did not result in more concrete steps to cool the market.
By Friday, New York’s main oil futures contract, light sweet crude for August was at $140.85, up from $134.56 a week earlier.
Brent North Sea crude for August jumped to $140.81 from $134.61.
PRECIOUS METALS: Precious metals prices were lower but gold was supported by the weak US currency.
On the London Bullion Market, gold advanced to $919.50 per ounce at Friday’s late fixing from $907.50 a week earlier.
Silver eased to $17.40 per ounce from $17.74.
On the London Platinum and Palladium Market, platinum slid to $2,053 per ounce at the late fixing on Friday from $2,068 a week earlier.
Palladium slipped to $467 per ounce from $475.
BASE METALS: Base metals prices mainly rose, also winning support from the struggling dollar.
For the moment, the dollar seems to be the underlying ruling factor in the metals, said BaseMetals analyst William Adams.
By Friday, copper for delivery in three months had jumped to $8,493 per ton on the London Metal Exchange from $8,330 a week earlier.—AFP
