Commodity prices mostly rose over the week thanks to strong support won on Friday after an EU summit delivered an unexpected deal aimed at further tackling the eurozone debt crisis.
A surprise agreement to save the euro wrenched after an all-night summit of leaders of the 17 eurozone nations brought immediate relief to crisis-hit Italy and Spain and sent the single currency soaring on Friday.
OIL: World oil prices surged at the end of a volatile trading week, with crude futures supported by the surprise EU summit deal and strike action by energy sector workers in Norway, traders said.
Prices rocketed more than US$4 a barrel on Friday, as traders lauded a US$150 billion growth pact pushed through by the EU after Italy and Spain lifted their opposition to it, analysts said.
“The optimistic news from the EU summit spread bullish signs across the oil market as crude oil prices rebounded strongly from recent losses,” Sucden Financial Research analyst Myrto Sokou said.
Despite the crude price rally, things were still looking grim in the eurozone, said Justin Harper, market strategist for IG Markets Singapore.
“I think it’s a short-term rally; it could fizzle out because people have seen that there’s still a lot of infighting between all the different member states,” he said.
Iran was also in focus, with an EU embargo on Iranian crude due to come fully into effect today, on the heels of further US sanctions.
By late Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in August rocketed to US$95.43 a barrel from US$90.62 a week earlier.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for August rallied to US$82.20 a barrel from US$79.39.
PRECIOUS METALS: Prices won strong support on Friday in the wake of the EU summit deal.
“Gold and the other precious metals are making a strong recovery ... doubtless on the back of a much weaker US dollar in the wake of the EU summit,” Commerzbank analysts said in a note
By late Friday on the London Bullion Market, gold climbed to US$1,598.50 an ounce from US$1,565.50 a week earlier.
Silver rose to US$27.08 an ounce from US$26.81.
On the London Platinum and Palladium Market, platinum decreased to US$1,428 an ounce from US$1,435.
Palladium dropped to US$578 an ounce from US$608 an ounce.
BASE METALS: Base metals prices rose across the board after a sharp rally on Friday. Aluminum hit a two-year low at US$1,832.25 on Wednesday.
By late Friday on the London Metal Exchange, copper for delivery in three months jumped to US$7,684 a tonne from US$7,339 a week earlier.
Three-month aluminum rose to US$1,905 a tonne from US$1,878.
Three-month lead increased to US$1,842 a tonne from US$1,820.
Three-month tin was up at US$18,910 a tonne from US$18,410.
Three-month zinc rose to US$1,860 a tonne from US$1,813.