(MENAFN- Khaleej Times)Oil sank last week after a landmark nuclear deal between Tehran and Western powers that would allow Iranian crude to flow back into the already saturated global market.
Many other commodities took a heavy knock from the rebounding dollar with precious metal gold striking a five-year low point. The greenback rallied on news of rising US inflation and after Federal Reserve chief Janet Yellen reaffirmed an interest rate hike by year-end. Greece's latest bailout deal also buoyed the US unit making many dollar-priced commodities less attractive to buyers using other currencies. Oil Crude oil prices fell heavily after key crude producer Iran's nuclear energy agreement with major world powers. Britain China France Germany Russia and the United States clinched a historic deal on Tuesday aimed at ensuring Iran does not obtain the nuclear bomb opening up Tehran's stricken economy and potentially ending decades of bad blood with the West. However analysts cautioned that it will take time for additional Iranian oil to hit markets. Elsewhere fears over the Greek debt crisis abated after Athens secured its third international bailout deal with creditors. However the euro failed to benefit because the Greek deal made it more likely the Fed would raise rates soon dealers said. By Friday on London's Intercontinental Exchange Brent North Sea crude for September delivery fell to $56.74 per barrel from $58.68 a week earlier for the August contract. On the New York Mercantile Exchange West Texas Intermediate or light sweet crude for August dropped to $50.34 a barrel from $52.74 a barrel. Precious metals Gold dived to $1131.20 per ounce on Friday striking a level last witnessed on April 6 2010 as rising US inflation cemented expectations of an interest rate hike and pushed the dollar higher. Platinum slid to a six-year nadir at $999.95 and sister metal palladium forged a three-year low at $616.65. "The precious metal dropped to a new five-year low... as renewed strength in the US dollar sent commodities lower across the board" said CMC Markets analyst Jasper Lawler. "The US dollar was mostly stronger on Friday supported by consumer price inflation that met expectations but supported the hawkish stance of Fed Chair Yellen in her two-day testimony to US lawmakers." By Friday on the London Bullion Market the price of gold dropped to $1132.80 an ounce from $1159.30 a week earlier. Silver fell to $15.01 an ounce from $15.45. On the London Platinum and Palladium Market platinum tumbled to $998 an ounce from $1032. Palladium slumped to $621 an ounce from $655. Base metals Prices mostly rallied as dealers mulled bright economic growth data in leading base metals consumer China but gains were then impacted by the rising dollar. "The upswing enjoyed by metal prices on the back of better than expected Chinese data was brought to a halt... by the firmer US dollar" said Commerzbank analysts in a research note to clients. By Friday on the London Metal Exchange copper for delivery in three months fell to $5507 a tonne from $5770.50 a week earlier. Three-month aluminium increased to $1707.50 a tonne from $1690.50. Three-month lead rose to $1835 a tonne from $1794.50. Three-month tin soared to $15675 a tonne from $13975. Three-month nickel climbed to $11465 a tonne from $11275. Three-month zinc advanced to $2074 a tonne from $2005.50. Cocoa Prices scored more four-year peaks as the market was pushed higher by supply troubles in key producer Ghana. Prices surged to 2242 in London and $3389 in New York - both the highest points since March 2011. By Friday on Liffe London's futures exchange cocoa for delivery in September grew to 2216 a tonne from 2199 a week earlier. By Friday on the ICE Futures US exchange cocoa for September increased to $3335 a tonne from $3293 the previous week. Sugar Prices retreated despite weather worries in major producers Brazil and Thailand that usually support the market. By Friday on Liffe a tonne of white sugar for delivery in October slid to $357.40 compared with $358.60 one week earlier. On ICE Futures US unrefined sugar for October dropped to 11.94 from 12.05 the previous week. Coffee Prices touched a new 18-month trough at $1669 per tonne in London dented by the impact of the weak currency in Brazil. By Friday on Liffe Robusta for September decreased to $1674 a tonne from $1732 one week earlier. On ICE Futures US Arabica for delivery in September rose to 127.40 a pound from 126.80 the previous week.
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