(MENAFN- Khaleej Times)Five-month highs reached on unexpected drop in US reserves; metals climb.
London — Oil faced a rollercoaster week striking five-month peaks on news of an unexpected slump in US crude reserves before sliding as oversupply worries resurfaced.
“After a strong start to the week with Brent seemingly heading for $70 per barrel the recovery in oil prices ran out of steam by Friday” said Capital Economics analyst Julian Jessop.
Heading into the weekend markets tracked the US interest rate outlook after a bright non-farm payrolls report in major commodity consumer the United States.
Traders warned that the Greek financial crisis had the potential to flare up and boost gold which is seen as a safe bet in times of economic turmoil.
“The only major event scheduled for the coming week is yet another meeting of the Eurogroup of finance ministers to discuss Greece on Monday” Jessop added. “We remain convinced that the Greek crisis will escalate at some point boosting gold prices but the precise timing is as uncertain as ever.”
Oil
Prices soared on Wednesday on news of a shock tumble in US crude stockpiles with Brent striking $69.63 and WTI reaching $62.58 per barrel — the highest levels so far this year. The latest official US stockpiles report showed crude reserves tumbled 3.9 million barrels in the week to May 1 the first decline in 16 weeks. The outcome confounded market expectations for an increase of 1.5 million barrels. Despite the decline however at 487 million barrels of crude the stockpiles were at their highest level on record for this time of year. And US crude-oil production slipped only marginally to 9.4 million barrels per day. The market also declined Friday on worries over rebounding US shale output. By Friday on London’s Intercontinental Exchange Brent North Sea crude for delivery in June dipped to $64.74 a barrel from $66.19 the previous week. On the New York Mercantile Exchange West Texas Intermediate or light sweet crude for June slid to $58.70 compared with $59.12.
Precious metals
Gold prices edged higher as dealers digested the US payrolls numbers and the Federal Reserve’s outlook for interest rates. By Friday on the London Bullion Market the price of gold advanced to $1186 an ounce from $1175.95 the previous week. Silver firmed to $16.31 an ounce from $16.17. On the London Platinum and Palladium Market platinum rose to $1140 an ounce from $1127. Palladium increased to $798 an ounce from $772.
Base metals
Base or industrial metals rose on the weak dollar but the rally fizzled out on concerns over China’s economic slowdown. By Friday on the London Metal Exchange copper for delivery in three months climbed to $6389 a tonne from $6343 the previous week. Three-month aluminium dipped to $1899 a tonne from $1908. Three-month lead decreased to $2067.50 a tonne from $2114.50. Three-month tin declined to $16025 a tonne from $16050. Three-month nickel increased to $14180 a tonne from $13780. Three-month zinc rose to $2365 a tonne from $2324.
Coffee
Prices weakened on predictions of abundant output from Brazil. By Friday on ICE Futures Arabica for delivery in July fell to 135.95¢ a pound from 137.30¢ the previous week. On Liffe London’s futures exchange Robusta for July dipped to $1753 a tonne from $1792.
Sugar
Prices turned sour as traders also eyed the prospect of plentiful supplies from Brazil. By Friday on Liffe a tonne of white sugar for delivery in August fell to $373.60 from $377.20 a week earlier. On ICE Futures US unrefined sugar for July decreased to 12.96¢ a pound from 13.16¢.
Cocoa
Prices hit two-month peaks supported by production worries in key producer Ghana before ending the week on a mixed note. The market rallied as high as £2028 in London and $2967 in New York. By Friday on Liffe cocoa for delivery in July had eased to £2008 a tonne from £2010 the previous week. On the ICE Futures US exchange cocoa for July increased to $2959 a tonne from $2938.
Rubber
Prices gained ground on keen demand from consuming countries dealers said. The Malaysian Rubber Board’s benchmark SMR20 on Friday firmed to 150.20¢ a kilo from 145.35¢ last Thursday. — AFP
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