Raw material prices endured a mixed week as investors tracked the outlook for global economic growth and the Ebola outbreak.
OIL: Oil prices headed back toward multi-month low points in volatile trading, pressured by oversupply of crude and weak demand from slowing world economies.
However, futures won brief strong gains on Thursday, “supported by the announcement that Saudi Arabia supplied less crude oil to the market in September,” Inenco analyst Dorian Lucas said.
Prices were also buoyed by better-than-expected economic data from China and EU powerhouse Germany.
While the German and eurozone purchasing manager’s index are encouraging, analysts said they would wait for data in the next few months to make firm conclusions on growth paths.
Aside from crude oversupply and weak demand from slowing world economies, analysts said investors were closely watching the impact of the Ebola virus health risk on global economies.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in December fell to US$86.03 a barrel from US$86.20 a week earlier.
On the New York Mercantile Exchange, West Texas Intermediate, or light sweet crude, for December slid to US$81.38 a barrel compared with US$83.27 for last month’s expired contract.
PRECIOUS METALS: Gold prices hit five-week highs on Tuesday before succumbing to profit-taking.
Gold hit US$1,255.37 an ounce, the highest level since the middle of tlast month, benefiting from its status as a haven investment.
By late on Friday on the London Bullion Market, the price of gold had eased to US$1,232.75 an ounce from US$1,234.25 a week earlier, while silver slid to US$17.19 an ounce from US$17.36.
On the London Platinum and Palladium Market, platinum slipped to US$1,254 an ounce from US$1,259 and palladium rallied to US$784 an ounce from US$753.
BASE METALS: Base or industrial metal prices mainly rose thanks to events in China.
“China managed to brighten the mood on the metal markets,” Commerzbank analysts said in a note to clients.
Reports at the start of the week said the People’s Bank of China plans to inject 200 billion yuan (US$32.6 billion) into the banking system after a spate of monetary easing failed to kickstart the economic giant, while HSBC Holdings PLC on Thursday said manufacturing growth accelerated to a three-month high this month.
However, HSBC said domestic and foreign demand were tepid, calling for further policy support to boost the world’s second-largest economy.
While China’s GDP expanded in the third quarter at its slowest pace since the depths of the global financial crisis, analysts said that the world’s second-largest economy may have bottomed out.
By Friday on the London Metal Exchange, copper for delivery in three months grew to US$6,724 a tonne from US$6,615 a week earlier, while three-month aluminium increased to US$1,971 a tonne from US$1,962.
Three-month lead fell to US$2,015 a tonne from US$2,030, tin edged to US$19,427 from US$19,426, nickel slid to US$15,174 from US$15,648 and zinc rose to US$2,265.25 from US$2,245.75.
RUBBER: Kuala Lumpur rubber prices extended gains, hitting a six-week high, after the Thai government’s announcement that it will help planters.
The Malaysian Rubber Board’s benchmark SMR20 rose to US$0.15970 a kilo on Friday, up from US$0.14990 a week ago.
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