Crude oil prices hit a one-year high of US$82 and metals rallied this week as the US currency struck a 14-month low against the euro as investors took on greater risk amid signs of recovery, traders said.
Among the soft commodities, cocoa prices struck 24-year highs on prospects of a poor crop in leading producer Ivory Coast. Andy Lipow of Lipow Oil Associates said a weak dollar “precipitated some buying in the commodities market, not only in oil.”
The European single currency jumped above US$1.50 on Wednesday for the first time since August last year as investors looked beyond the safe-haven US unit, of which the super-low interest rates are no longer attractive as recovery takes hold.
OIL: Oil prices rallied in the past week, with New York crude hitting a one-year high of US$82, driven by a weak dollar and optimism over the global economic recovery, analysts said.
New York’s main contract, light sweet crude for delivery in December, touched US$82 a barrel on Wednesday — a level last seen on Oct. 14 last year.
The falling dollar makes dollar-priced oil cheaper for buyers holding stronger currencies, and therefore tends to stimulate crude demand and eventually prices.
OPEC Secretary-General Abdalla Salem El-Badri said in London on Thursday that the cartel would consider ramping up crude oil production at its next meeting in December should economic growth improve and other conditions be met.
The cartel “will not hesitate to increase its production in December,” he told reporters, adding the decision was dependent also on higher oil prices and no floating storage of crude.
By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in November rose to US$80.48 dollars compared with US$77.32 for the expired November contract a week earlier.
On London’s InterContinental Exchange (ICE), Brent North Sea crude for December delivery climbed to US$78.91 from US$75.93 dollars a week earlier.
PRECIOUS METALS: The price of gold rose but failed to beat its recent record high of US$1,070.80 an ounce.
Gold hit an all-time high the previous week as the dollar weakened before falling on profit-taking. Platinum and palladium reached their highest levels in more than a year.
By late Friday on the London Bullion Market, gold climbed to US$1,061.75 an ounce from US$1,047.50 a week earlier.
Silver gained to US$17.65 an ounce from US$17.31.
On the London Platinum and Palladium Market, platinum advanced to US$1,372 an ounce at the late fixing on Friday from US$1,346.
Palladium firmed to US$338 an ounce from US$326.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
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REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from