LONDON, Sept 10: Oil prices plummeted this week after an agreement by industrial powers to release emergency crude reserves in the wake of Hurricane Katrina. Gold prices reached the highest level in 2005, as a weaker dollar boosted buying, while copper cooled after hitting a record peak the week before.

Traders in a number of soft commodities — including grains and cotton — were awaiting data that would reveal the impact on supplies caused by Hurricane Katrina.

The Commodities Research Bureau’s index of 17 commodities fell to 324.77 points on Friday from 337.18 points the previous week, which was the highest level since November 1980.

GOLD: Gold prices extended gains as the US currency weakened towards the end of the week.

“Fund buying prompted by a weaker dollar pushed prices” higher, said Barclays Capital analyst Yingxi Yu.

Gold climbed to 449.40 dollars per ounce on Thursday in London trading, the highest point this year, and reached the highest level in Tokyo since 1991, before succumbing to profit-taking.

“Downside risks are limited in the current environment, with the improved market sentiment following the World Gold Councils upbeat assessment of the physical market on Wednesday as well as strong physical demand from India ahead of festival seasons,” Yu added.

The dollar took a knock late in the week as rebounding oil prices ignited concerns about global economic growth.

A weaker dollar traditionally makes gold, which is priced in the US currency on world markets, more attractive to buyers using other currencies.

On the London Bullion Market, gold prices climbed to 448.25 dollars per ounce at the late fixing on Friday from 443.60 dollars the previous week.

SILVER: Silver prices dipped after earlier extending gains above 7.0 dollars per ounce.

“Silver briefly hit recent tough resistance of 7.10 dollars Thursday, but quickly ran into profit-taking,” Yu said.

On the London Bullion Market, silver prices fell to 6.985 dollars per ounce at the late fixing Friday from 7.020 dollars the previous week.

PLATINUM AND PALLADIUM: Platinum prices gained only slightly after an explosion at a foundry owned by leading producer Anglo Platinum in South Africa, while palladium steadied.

“Prices failed to react noticeably to news of the shut down of Angloplats Polokwane smelter due to an explosion, as the company had about 50-per cent excess capacity,” Yu said.

By Friday, platinum prices rose to 909 dollars per ounce on the London Platinum and Palladium Market at the late fixing, from 905 dollars the previous week.

Palladium prices stood at 183 dollars per ounce on Friday from 184 dollars.

BASE METALS: Base metals prices dropped on recovering inventories.

“Sentiment in the market which has been extremely bullish over the summer seems to have shifted into a slightly more uncertain mode,” said William Adams, an analyst for specialist website Basemetals.com.

Copper futures had reached a record high 3,725 dollars per tonne in London trading on September 2 owing to a drop in stockpiles.

By Friday, three-month copper prices fell to 3,548 dollars per tonne on the London Metal Exchange from 3,692 dollars the previous week.

Three-month aluminium prices dropped to 1,839.50 dollars per tonne Friday from 1,893.50 dollars.

Three-month nickel prices slid to 14,500 dollars per tonne on Friday from 15,325 dollars.

Three-month lead prices decreased to 864 dollars per tonne Friday from 895.50 dollars.

Three-month zinc prices slipped to 1,367 dollars per tonne Friday from 1,429 dollars.

Three-month tin prices recoiled to 6,850 dollars per tonne Friday from 7,065 dollars.

OIL: Oil prices plunged after the International Energy Agency (IEA) offered some of its emergency stockpiles to feed US refineries left short of crude in the wake of Hurricane Katrina.

However prices began rebounding Thursday on renewed supply concerns after data revealed severe disruptions to production following the natural disaster.

The IEA said on September 2 that its members would release 60 million barrels of crude products over an initial period of 30 days — resulting in heavy falls to prices.

On Friday the organisation said that Katrina had delivered a “severe” shock to Gulf of Mexico oil supplies, damaging pipelines and scores of platforms, but 90 per cent of production could be back on stream within a few months.

Katrina was likely to curtail world oil production until the end of the year by 55 million barrels, about the same as Hurricane Ivan in 2004, the IEA estimated in a report.

The forecasts came a day after US government data showed sharp drops in the country’s energy inventories owing to the hurricane.

The US Department of Energy (DoE) weekly report on Thursday had shown a drawdown in key petroleum stocks in the week ending September 2, with crude inventories at 315 million barrels, down 6.4 million barrels from the week before.

Stocks of gasoline (petrol) fell by 4.3 million barrels to 190.1 million barrels, much better than the 6.2-million-barrel drop expected by the markets but “below the bottom end of the average range” of falls, the DoE said.

On August 30, a day after Katrina battered US oil facilities on the Gulf coast, New York’s main oil contract hit a record-high 70.85 dollars per barrel, while in London Brent reached an all-time high 68.89 dollars — leaving prices double the levels in 2003.

By Friday, New York’s light sweet crude for October delivery dropped to 64.80 dollars per barrel from 67.75 dollars the previous week.

In London, Brent North Sea crude for October delivery slid to 63.46 dollars per barrel from $66.39.

RUBBER: Rubber extended gains this week owing to supply losses caused by Hurricane Katrina.

“Prices have been again on the rise this week, still the repercussion of the shortage that was created due to this hurricane in New Orleans,” said Rachid Ahmed, a trader at Corrie Maccoll.

“It could take a couple of months to know how much rubber is damaged,” he added.

A large amount of rubber is shipped and stored in the ports near New Orleans, the city worst affected by Katrina.

On TOCOM, Tokyo’s commodity exchange, natural rubber for October delivery rose to 188 yen on Friday, from 180.60 yen a week earlier.

Singapore’s RSS 3 October contract advanced to 172.25 US cents on Friday, from 167.50 cents.

COCOA: Cocoa prices reached the highest level for two and a half months on strong buying, after a report that forecast a smaller crop in the second biggest producer Ghana prompted buying.

Cocoa reached 894 dollars on Thursday, the highest level since June 24, before cooling on profit-taking.

“Ghana’s cocoa output in the 2004/05 season currently stands at 520,000 tons and will fall short of 600,000 tons according to an official at the countrys cocoa regulator,” Sucden analyst Michael Davies said.

On LIFFE, London’s futures exchange, the price of cocoa for December delivery rose to 880 pounds per tonne on Friday from 877 pounds a week earlier.

On the CSCE, the New York futures market, the December contract stood at 1,540 dollars per tonne on Friday, from 1,539 dollars.

COFFEE: Coffee prices sank after it was revealed that Hurricane Katrina failed to destroy US coffee stockpiles.

Coffee fell “precipitously as players tossed off Katrina damage to warehouse coffee stored in New Orleans”, Refco analyst Ann Prendergast said.

On LIFFE, Robusta quality for November delivery slumped to 962 dollars per tonne on Friday from 1,016 dollars a week earlier.

On New York’s CSCE market, Arabica for December delivery dropped to 96.45 US cents per pound on Friday, from 103.90 cents.

SUGAR: Sugar prices firmed as the market looked ahead to robust demand.

“The market outlook still remains positive on strong consumer demand from Asia and the Middle East,” Sucden’s Davies said.

By Friday on LIFFE, the price of a tonne of white sugar for October delivery stood at 309.70 dollars from 309 dollars a week earlier.

On the CSCE in New York, a pound of unrefined sugar for October delivery inched up to 10.20 US cents on Friday from 10.07 cents.

GRAINS AND SOYA: Grains and soya prices steadied as traders awaited data next week that would show the impact on US supplies caused by Katrina.

On LIFFE, wheat for November delivery stood at 67.00 pounds per tonne on Friday from 67.50 pounds a week earlier.

In Chicago, the price of wheat for September delivery rose to 310 US cents per bushel Friday from 306 cents.

Maize for September delivery eased to 203.25 cents per bushel on Friday from 204.50 cents.

Soyabeans for September delivery climbed to 594 cents per bushel on Friday from 589 cents.

September-dated soyabean meal — used in animal feed — advanced to 183.80 dollars per tonne from 182.80 dollars.

COTTON: Cotton prices extended gains ahead of data that would reveal any damage to the US harvest in the wake of Katrina.

New York’s December contract rose to 52.01 US cents per pound on Friday from 49.45 cents the previous week.

The Cotton Outlook Index of physical cotton stood at 55.80 cents on Thursday from 53.35 cents a week earlier.

WOOL: Wool prices fell in major producer Australia as the country’s dollar rose against its US counterpart and Chinese demand fell slightly.

“The Australian Wool Market finished this week with prices 2.2-per cent lower, on average,” the Australian Wool Industries Secretariat said.

The Australian Eastern index fell to 6.78 Australian dollars per kilo on Thursday, from 6.92 dollars the previous week.

The British Wooltops index dropped to 402 pence on Thursday from 412 pence a week earlier.—AFP