Oil prices diverged this week as traders reacted to demand forecasts and the performance of the US dollar, while metals futures hit multi-month highs.
OIL: Crude oil began this week on a downbeat note, sinking under pressure from mediocre demand in the US, and falling further after the IEA warned about risks of high oil costs.
The IEA on Tuesday revised up its forecast for global oil demand this year by 30,000 barrels per day owing to unexpectedly strong economic activity in the US, Asia and the Middle East.
However, the IEA also warned in its latest monthly report that oil prices above US$80 a barrel could hamper economic recovery.
“While ongoing price subsidies may shield non-OECD consumers from the reality of any potential renewed surge in prices, this, plus tighter credit than two years ago, could stall OECD economic recovery or render it more ‘oil-less’ than we currently envisage,” the IEA said. “Ultimately, things might turn messy for producers if [oil at] 80-100 dollars a barrel is merely seen as the new 60-80 dollars a barrel, stunting economic recovery while prompting resurgent non-oil and non-OPEC supply investment.”
By late on Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in May slid to US$84.08 from US$85.45 a week earlier.
On London’s IntercontinentalExchange, Brent North Sea crude for June delivery stood at US$86.53 compared with US$85.23 for the May-expired contract a week earlier.
PRECIOUS METALS: Precious metals prices hit multi-month highs as the US dollar weakened.
Gold reached US$1,170 a barrel on Monday — the highest level since the start of December.
The price of gold is set to win further support as investors shun struggling currencies, notably the dollar, metals consultancy GFMS predicted on Wednesday.
“Looking ahead, further price gains were thought likely as the investment case was still perceived as strong, with for example all the major currencies now being questioned by investors,” London-based GFMS said in its latest annual survey on gold.
By late on Friday on the London Bullion Market, gold eased to US$1,151.50 an ounce from US$1,152.50 the previous week.
Silver grew to US$18.34 an ounce from US$17.69.
On the London Platinum and Palladium Market, platinum fell to US$1,708 an ounce from US$1,717.
Palladium jumped to US$532 an ounce from US$511.
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Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique