(MENAFN- Khaleej Times)Oil prices have fallen as much as 50 per cent since mid-2014 on the back of copious global supplies and weak demand.
London - Star commodity performer oil surged in value last week on hopes that easing US shale output could help curb the stubborn global supply glut analysts said.
“Oil prices rose sharply in the past week supported by further evidence that US production and crude stocks are close to peaking — if they have not done so already” said Julian Jessop head of commodities research at consultancy Capital Economics. “The recent stability of the US dollar has also helped sentiment towards commodities more generally.”
Oil prices have fallen as much as 50 per cent since mid-2014 on the back of copious global supplies and weak demand.
Oil
Crude futures rallied on signs that US shale oil production — a key driver of the stubborn supply glut that sparked collapsing prices — may be on the cusp of easing. The Organisation of the Petroleum Exporting Countries predicted that US crude production would fall in the final half of the year reducing the global oversupply. “Higher global refinery runs driven by increased seasonal demand along with the improvement in refinery margins are likely to increase demand for crude oil over the coming months” the Opec said in its monthly oil market report. “Given expectations for lower US crude oil production in the second half of the year these higher refinery needs will be partially met by crude oil stocks reducing the current overhang in inventories.” Prices diverged on Friday as traders locked in profits following a six-day rally. By Friday on London’s Intercontinental Exchange Brent North Sea crude for delivery in June rallied to $64.00 a barrel from $56.84 for the May contract the previous week. On the New York Mercantile Exchange West Texas Intermediate or light sweet crude for May leapt to $56.12 compared with $50.80.
Precious metals
Gold climbed as uncertainty over Greece’s potential eurozone exit sent investors into the safe-haven commodity. By Friday on the London Bullion Market the price of gold climbed to $1203.35 an ounce from $1182.75 the previous week. Silver firmed to $16.36 an ounce from $16.30. On the London Platinum and Palladium Market platinum dipped to $1161 an ounce from $1205. Palladium was unchanged at $777 an ounce.
Base metals
Base or industrial metals diverged but tin slumped on oversupply fears. By Friday on the London Metal Exchange copper for delivery in three months rose to $6079 a tonne from $6025.50 the previous week. Three-month aluminium advanced to $1837 a tonne from $1766.50. Three-month lead increased to $2043.50 a tonne from $1998.50. Three-month tin tumbled to $15100 a tonne from $16570. Three-month nickel increased to $12745 a tonne from $12680. Three-month zinc edged higher to $2223 a tonne from $2203.50.
Sugar
Prices recovered further from the commodity’s recent slide close to six-year lows. By Friday on Liffe London’s futures exchange a tonne of white sugar for delivery in August gained to $375.10 from $366.10 a week earlier. On ICE Futures US unrefined sugar for July increased to 13.22¢ a pound from 12.45¢.
Cocoa
Futures rebounded despite ongoing concerns for world demand. By Friday on Liffe cocoa for delivery in July climbed to £1979 a tonne from £1974 the previous week. On the ICE Futures US exchange cocoa for July rose to $2875 a tonne from $2804.
Coffee
Prices posted modest gains. By Friday on ICE Futures Arabica for delivery in July rose to 142.55¢ a pound from 136.70¢ the previous week. On Liffe Robusta for July gained to $1832 a tonne from $1799.
Rubber
Prices rose on keen demand. By Friday the Malaysian Rubber Board’s benchmark SMR20 rose to 139.85¢ a kilo from 136.90¢ a week earlier.
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