The commodity markets were roiled this week this week as a severe disruption to global air travel impacted supply and demand for raw materials such as oil and metals, analysts said.
A volcanic eruption in Iceland spewed ash across Europe, forcing airplanes from the skies for safety reasons, with the industry badly hit and only getting back on its feet by Friday.
OIL: Oil prices ended the week in negative territory at the end of a volatile week marked by the unprecedented closure of European airspace and data showing sagging demand in key energy consumer the US.
Prices slumped almost US$2 on Monday amid continued concerns over fraud charges against Wall Street icon Goldman Sachs and the closure of European airports.
The market bounced back on Tuesday, rising dramatically on the back of optimism about the state of the economy and the prospect of air travel resuming.
Traders reacted to a pickup in jet fuel demand as planes increasingly took to the skies while stellar Goldman Sachs first-quarter earnings also boosted the market given the company’s positive outlook on the economy.
News that US crude reserves increased 1.9 million barrels in the week ending April 16, against market expectations for a drop of 200,000 barrels, sparked fresh concerns about underlying demand in the world’s biggest energy user.
“It does put some doubt into the fact that the market won’t move back into balance,” said Ben Westmore, minerals and energy economist for the National Australia Bank in Melbourne. “It’s arguable whether [oil above US$80] is really justified given the very weak fundamentals.”
By late Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in June eased to US$83.96 from US$84.08 last week.
On London’s IntercontinentalExchange, Brent North Sea crude for June delivery slipped to US$86.22 from US$86.53 for the May contract a week earlier.
PRECIOUS METALS: Palladium prices hit the highest level in more than two years.
“Palladium prices set fresh 25-month highs as investment hits new record and China’s imports remain robust,” Barclays Capital analyst Suki Cooper said.
Gold meanwhile failed to hold on to gains made at the start of the week when the dollar had slid.
By late Friday on the London Bullion Market, gold dropped to US$1,139.50 an ounce from US$1,151.50 the previous week.
Silver slid to US$17.89 an ounce from US$18.34.
On the London Platinum and Palladium Market, platinum rose to US$1,725 an ounce from US$1,708.
Palladium jumped to US$555 an ounce from US$532.
NO-LIMITS PARTNERSHIP: ‘The bottom line’ is that if the US were to have a conflict with China or Russia it would likely open up a second front with the other, a US senator said Beijing and Moscow could cooperate in a conflict over Taiwan, the top US intelligence chief told the US Senate this week. “We see China and Russia, for the first time, exercising together in relation to Taiwan and recognizing that this is a place where China definitely wants Russia to be working with them, and we see no reason why they wouldn’t,” US Director of National Intelligence Avril Haines told a US Senate Committee on Armed Services hearing on Thursday. US Senator Mike Rounds asked Haines about such a potential scenario. He also asked US Defense Intelligence Agency Director Lieutenant General Jeffrey Kruse
INSPIRING: Taiwan has been a model in the Asia-Pacific region with its democratic transition, free and fair elections and open society, the vice president-elect said Taiwan can play a leadership role in the Asia-Pacific region, vice president-elect Hsiao Bi-khim (蕭美琴) told a forum in Taipei yesterday, highlighting the nation’s resilience in the face of geopolitical challenges. “Not only can Taiwan help, but Taiwan can lead ... not only can Taiwan play a leadership role, but Taiwan’s leadership is important to the world,” Hsiao told the annual forum hosted by the Center for Asia-Pacific Resilience and Innovation think tank. Hsiao thanked Taiwan’s international friends for their long-term support, citing the example of US President Joe Biden last month signing into law a bill to provide aid to Taiwan,
China’s intrusive and territorial claims in the Indo-Pacific region are “illegal, coercive, aggressive and deceptive,” new US Indo-Pacific Commander Admiral Samuel Paparo said on Friday, adding that he would continue working with allies and partners to keep the area free and open. Paparo made the remarks at a change-of-command ceremony at Joint Base Pearl Harbor-Hickam in Hawaii, where he took over the command from Admiral John Aquilino. “Our world faces a complex problem set in the troubling actions of the People’s Republic of China [PRC] and its rapid buildup of forces. We must be ready to answer the PRC’s increasingly intrusive and
STATE OF THE NATION: The legislature should invite the president to deliver an address every year, the TPP said, adding that Lai should also have to answer legislators’ questions The Chinese Nationalist Party (KMT) yesterday proposed inviting president-elect William Lai (賴清德) to make a historic first state of the nation address at the legislature following his inauguration on May 20. Lai is expected to face many domestic and international challenges, and should clarify his intended policies with the public’s representatives, KMT caucus secretary-general Hung Meng-kai (洪孟楷) said when making the proposal at a meeting of the legislature’s Procedure Committee. The committee voted to add the item to the agenda for Friday, along with another similar proposal put forward by the Taiwan People’s Party (TPP). The invitation is in line with Article 15-2