LONDON, Oct 11: Oil prices sank below $80 per barrel this week as commodities were knocked by plunging world stock markets, but gold benefited from its status as a safe bet in times of economic turmoil.

“The deteriorating outlook for world growth is leading to a violent correction in commodity prices,” Deutsche Bank analysts wrote in a research note to clients.

However, precious metals were a bright spot, as investors sought to shelter their cash from tumbling equities.

OIL: Crude oil prices slumped to one-year lows on Friday, striking 75 dollars in London, amid a global equities meltdown that sparked fears over demand for energy, traders said.

The International Energy Agency (IEA) also warned that the threat of recession and the ongoing financial crisis would erode oil demand and set back investment in new oilfields.

Brent North Sea oil plunged as low as $75.00 -- which was last witnessed on October 12, 2007 -- as traders responded to renewed heavy falls on world stock markets.

New York’s light sweet crude plumbed a one-year low of $78.61 a barrel.

Over the course of the week, prices shed about $14 in value.

By Friday, New York’s main oil futures contract, light sweet crude for delivery in November, had tumbled to $79.96 per barrel from $94.33 a week earlier.

Brent North Sea crude for November slumped to $76.56 from $90.93.

PRECIOUS METALS: Gold rallied, drawing strength from its safe-haven qualities and dragging most precious metals higher.

“In this environment, fundamentals (of supply and demand) do not matter,” said Dresdner Kleinwort analyst Peter Fertig.

“Many investors view gold as the only life-boat in the stormy sea.”

On the London Bullion Market, gold jumped to $900.50 an ounce at Friday’s late fixing from $828 a week earlier.

Silver rallied to $11.74 an ounce from $11.20.

On the London Platinum and Palladium Market, platinum rose to $1,001 an ounce at the late fixing on Friday from $959 a week earlier.

Palladium eased to $190 an ounce from $197.

BASE METALS: Base metals prices took a nosedive on worries about a global recession.

“Prices fall sharply to fresh multi-month and multi-year lows ... as gyrations in wider financial markets and recessionary fears depress sentiment,” Barclays Capital analysts wrote in a research note to clients.

By Friday, copper for delivery in three months had fallen to $4,824 per ton on the London Metal Exchange from $5,855 a week earlier.

Three-month aluminium dropped to $2,192 per ton from $2,290.

Three-month lead slid to $1,469 per ton from $1,710.

Three-month zinc declined to $1,372 per ton from $1,580.

Three-month tin decreased to $13,600 per ton from $16,859.

Three-month nickel tumbled to $11,101 per ton from $15,399.

COFFEE: Coffee prices recorded heavy falls.

“Coffee prices continued their melt-down in concert with other commodity/stock markets as the global financial tsunami continues to take its toll,” said Sucden analyst Ralph Hawes.

By Friday on LIFFE, London’s futures exchange, Robusta for November delivery fell to $1,748 per ton from $1,924 a week earlier.

On the New York Board of Trade (NYBOT), Arabica for December delivery sank to 114.10 US cents per pound from 123.55 cents.

COCOA: Cocoa prices fell sharply.

“Cocoa saw a further round of fund selling as did the other soft (commodities) in light of ongoing gloomy global economic conditions,” said Sucden analyst Stephanie Garner.

By Friday on LIFFE, the price of cocoa for December slid to 1,368 pounds per ton from 1,426 pounds a week earlier.

On the NYBOT, the December cocoa contract retreated to $2,249 per ton from $2,461.

SUGAR: Sugar prices also beat a retreat.

By Friday on LIFFE, the price per ton of white sugar for December delivery dropped to 324.90 pounds from 358 pounds the previous week.

On NYBOT, the price of unrefined sugar for March delivery fell to 11.40 US cents per pound from 12.67 cents.

GRAINS AND SOYA: Grains and soya prices dipped, mirroring losses in other commodity markets.“Grains prices have resumed their downward trend (on Friday), despite appearing to gain some traction yesterday, as general market sentiment refocused on the impact of the ongoing financial turmoil,” Barclays Capital analysts said.