Brent oil prices hit a four-year low this week due to plentiful crude supplies and demand fears arising from global economic uncertainty.
Many commodities were hit by grim economic data, particularly from Germany and the IMF’s warning that the eurozone could tip into recession.
On the upside, the coffee market hit a two-year peak as a “devastating” drought in key producer Brazil slashed supplies, analysts said.
OIL: Brent prices dove to a four-year trough on Friday, extending this week’s sharp falls as worries intensified over the demand outlook.
Brent North Sea oil struck US$88.11 a barrel, the lowest since Dec. 1, 2010, while New York’s light, sweet crude hit US$83.59 per barrel — a level last seen on July 3, 2012.
Both contracts have now plunged by about one-fifth since striking their yearly peaks in June.
Crude futures tumbled as fresh evidence of economic weakness in the eurozone added to concerns over slowing global growth and abundant oil supplies.
Sentiment was also hit by stubborn worries over the Ebola outbreak in West Africa, ample global supplies owing to increased US shale production and a return to the market of Libyan oil after prolonged disruption due to civil unrest.
In the US, a key report also showed rising crude inventories, signaling weakening demand in the world’s top oil consumer.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery next month sank to US$89.85 a barrel, compared with US$91.88 one week earlier.
On the New York Mercantile Exchange, West Texas Intermediate, or light sweet crude, for next month fell to US$85.68 from US$89.67.
PRECIOUS METALS: Gold gained more ground, boosted by its haven status and the faltering US dollar.
“Precious metals and platinum group metals received a boost from the weaker [US] dollar and rising uncertainty in the stock markets together with falling bond yields,” Saxo Bank analyst Ole Hansen said.
The weaker greenback makes US dollar-priced commodities cheaper for buyers using stronger currencies.
By late on Friday on the London Bullion Market, gold had risen to US$1,219 an ounce from US$1,195 a week earlier, as silver increased to US$17.26 an ounce from US$16.97.
On the London Platinum and Palladium Market, platinum gained to US$1,256 an ounce from US$1,249, while palladium firmed to US$784 an ounce from US$763.
COFFEE: Arabica prices soared to a 2012 peak as a drought devastated crops in top global producer Brazil.
Arabica coffee jumped to US$0.22550 per pound (0.45kg), the highest level since January 2012, while robusta rallied to a seven-month peak at US$2,200 per tonne.
By Friday on ICE Futures US, arabica for delivery in December rallied to US$0.22080 a pound from US$0.20945 a week earlier.
On LIFFE, London’s futures exchange, robusta for next month rebounded to US$2,186 a tonne from US$2,065 a week earlier.
RUBBER: Kuala Lumpur prices rose in subdued trading conditions.
The Malaysian Rubber Board’s benchmark SMR20 stood at US$0.14250 per kilo on Friday, up from US$0.14185 last week.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
TRANSFORMATION: Taiwan is now home to the largest Google hardware research and development center outside of the US, thanks to the nation’s economic policies President Tsai Ing-wen (蔡英文) yesterday attended an event marking the opening of Google’s second hardware research and development (R&D) office in Taiwan, which was held at New Taipei City’s Banciao District (板橋). This signals Taiwan’s transformation into the world’s largest Google hardware research and development center outside of the US, validating the nation’s economic policy in the past eight years, she said. The “five plus two” innovative industries policy, “six core strategic industries” initiative and infrastructure projects have grown the national industry and established resilient supply chains that withstood the COVID-19 pandemic, Tsai said. Taiwan has improved investment conditions of the domestic economy
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day