World oil prices slid this week as OPEC decided against cutting its output target, while a stronger US dollar also weighed on commodities, including gold.
OIL: Prices fell throughout the week on expectations that OPEC would maintain its crude oil output ceiling, which turned out to be the case following a meeting on Friday.
OPEC stuck to its strategy of preserving market share in the face of cheaper competition from the US shale energy boom.
“Today’s [Friday’s] OPEC meeting did nothing to help oil prices push higher after OPEC oil ministers held production quotas at current levels of 30 million barrels per day,” said Michael Hewson, chief market analyst at traders CMC Markets UK.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in July slid to US$61.15 a barrel from US$64.35 a week earlier. On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for July dropped to US$57.54 a barrel from US$58.52 a week earlier.
PRECIOUS METALS: Gold prices hit a near three-month low on Friday at US$1,162.75 an ounce.
“Dollar strength relative the euro looks like it will remain all-important, and this has been the main factor in the latest positioning shift among commodity investors,” UniCredit analysts said in a note to clients.
A stronger US unit makes dollar-denominated commodities such as gold more expensive for holders of rival currencies, denting demand.
By Friday on the London Bullion Market, the price of gold dropped to US$1,164.60 an ounce from US$1,191.40 a week earlier.
Silver fell to US$16.15 an ounce from US$16.67.
On the London Platinum and Palladium Market, platinum slid to US$1,092 an ounce from US$1,115, while palladium fell to US$751 an ounce from US$783.
BASE METALS: Base or industrial metals prices mostly dropped as the US dollar rose, while copper futures were hit by concerns about weaker Chinese demand.
“Prices are under pressure due to fears of an imminent slowdown in demand in China, as the second quarter — traditionally a period of strong demand — has now passed its peak,” analysts at Commerzbank said.
By Friday on the London Metal Exchange, copper for delivery in three months slipped to US$5,919.50 a tonne from US$6,071.50 a week earlier.
Three-month aluminum fell to US$1,730 a tonne from US$1,748, and three-month lead decreased to US$1,913 a tonne from US$1,972.50.
Three-month tin declined to US$15,210 a tonne from US$15,450, while three-month nickel increased to US$12,905 a tonne from US$12,745.
Three-month zinc declined to US$2,137.50 a tonne from US$2,207.
COCOA: Prices dipped a week after hitting four-year highs in London on tight supply worries.
By Friday on LIFFE, London’s futures exchange, cocoa for delivery in July fell to £2,094 a tonne from £2,126 a week earlier.
On the ICE Futures US exchange, cocoa for July slid to US$3,092 a tonne from US$3,121.
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