World oil prices sank lower this week on gloomy market forecasts, profit-taking and ever-present worries over the global supply glut, ahead of a producers’ meeting on Sept. 26 to 28.
The Paris-based International Energy Agency set the tone on Tuesday, warning that oil demand growth was slowing while supply was rising.
However, fresh data showing mounting US stockpiles of crude and products, and Libya’s pledge to sharply boost production and exports within weeks, added to the downward pressure on prices.
At the same time, Nigeria — Africa’s biggest crude producer — appears set to increase its oil exports, traders said.
On Friday in London trading, European benchmark Brent North Sea crude for November delivery slipped US$0.82 to US$45.77 per barrel from late Thursday.
West Texas Intermediate (WTI) for delivery in October slid US$0.88 to US$43.03 a barrel.
That left Brent down 4.5 percent for the week, while WTI lost 6.6 percent.
PRECIOUS METALS: Precious metals declined, with platinum heading for a seventh straight weekly loss, the longest run since 2013, and palladium set to record the worst slump since May.
Investors are losing interest as the popularity of electric cars, which use less platinum and palladium than gasoline-fueled vehicles, threatens demand for the metals used in auto pollution-control devices, SP Angel Corporate Finance LLP analyst John Meyer said.
Platinum for immediate delivery slid 1.8 percent to US$1,013.90 an ounce (28.3g) at 2:27pm in New York, according to Bloomberg generic pricing.
Palladium, which climbed 2.4 percent on Friday, headed for a fourth straight weekly drop.
The recent declines have put a halt to an earlier rally this year, paring this year’s gain to 14 percent. Investors have speculated that resilient automotive sales would boost consumption. The metal has also increased alongside gold, which is up more than 20 percent this year as the US Federal Reserve’s decision to delay raising interest rates further boosted the metals’ appeal as a store of value.
Gains in precious metals have slowed in the second half of this year amid mixed signals on rates from the Fed, which meets next week.
Gold futures for December delivery slid 0.6 percent to settle at US$1,310.20 an ounce on the Comex in New York. Silver futures also declined. Holdings in exchange-traded funds backed by gold declined 4.3 tonnes to 2,014.6 tonnes on Thursday, the lowest since July 29, data compiled by Bloomberg show
BASE METALS: Copper is at last getting a moment in the sun. Prices posted the biggest weekly gain in two months as the metal that has lagged behind its peers this year gets a boost from signs that demand may strengthen in China, the biggest consumer.
Copper analysts and traders remain bullish on the near-term outlook for prices after a slew of Chinese data fueled speculation demand would improve, according to a Bloomberg survey. Figures this week showed new credit surpassed estimates after readings for factory output, investment and retail sales also exceeded expectations.
The metal for delivery in three months rose 0.1 percent to US$4,788 a tonne at 5:51pm on the London Metal Exchange, leaving the weekly gain at 3.3 percent, the biggest increase since mid-July. By contrast, zinc — the top metals performer this year — posted its first back-to-back weekly drop since January.
Copper has advanced just 1.8 percent this year, the least among the six main base metals, amid speculation that growth in supply is topping demand to spur a surplus.
Anglo American PLC is resuming operations at its Los Bronces copper mine in central Chile after reaching a wage agreement to end a weeklong strike. In the next nine months, Codelco, the world’s largest copper producer, is scheduled to negotiate new contracts with about 5,200 workers.
Zinc has rallied 38 percent this year amid forecasts for a worldwide deficit following mine depletions, and after some producers, including Glencore PLC, cut supply. The price — which rose to US$2,372 a tonne earlier this month, the highest since May last year — slid 0.7 percent to US$2,215 a tonne on Friday.
Copper stockpiles tracked by the London Metal Exchange fell for a fourth day, the longest declining streak since June 22. Prices of aluminum, nickel and tin advanced in London, while lead declined.
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
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