Commodity prices diverged this week as investors reacted to the Greek debt crisis that has affected major financial markets, traders said.
OIL: Oil prices rose over the week after a topsy-turvy week amid uncertainty over a Greek bailout.
Prices sunk at the start of the week on heightened concerns about a Greek financial crisis after its debt was slashed to junk status, fanning fears of a default.
The oil market was “sharply pressurised by rising concerns over Greece’s debt problems,” analysts at Barclays Capital said.
A fierce global equities sell-off began on Tuesday after ratings agency Standard & Poor’s (S&P) cut Greek debt to junk, while a downgrade to Portugal also stoked concerns about a widening eurozone crisis.
Crude futures recovered late in the week as fears about Greece eased.
In other news affecting energy market sentiment, the White House indicated that new domestic offshore oil drilling will be on hold until the investigation of a Gulf of Mexico disaster is complete.
British energy giant BP said it was “taking full responsibility” for the oil spill, adding it would pay for “legitimate claims” stemming from the disaster.
By late Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in June jumped to US$85.62 from US$83.96 a week earlier.
On London’s IntercontinentalExchange, Brent North Sea crude for June delivery climbed to US$87.03 compared with US$86.22.
PRECIOUS METALS: Gold prices reached the highest level this year at US$1,181.75 an ounce.
“Safe haven buying continued to buoy prices following S&P’s downgrading of Spain’s credit rating,” Barclays Capital analyst Suki Cooper said.
By late Friday on the London Bullion Market, gold climbed to US$1,179.25 an ounce from US$1,139.50 the previous week.
Silver gained to US$18.62 an ounce from US$17.89.
On the London Platinum and Palladium Market, platinum rose to US$1,738 an ounce from US$1,725.
Palladium dipped to US$552 an ounce from US$555.
BASE METALS: Base metals prices fell across the board “as on-going uncertainties over the Greek debt situation and potential contagion effects weighed on broad market sentiment,” Barclays Capital analyst Nicholas Snowdon said.
By Friday on the London Metal Exchange, copper for delivery in three months fell to US$7,399 a tonne from US$7,740 a week earlier.
Three-month aluminum dropped to US$2,207 a tonne from US$2,312.
Beijing’s continued provocations in the Taiwan Strait reveal its intention to unilaterally change the “status quo” in the area, the US Department of State said on Saturday, calling for a peaceful resolution to cross-strait issues. The Coast Guard Administration (CGA) reported that four China Coast Guard patrol vessels entered restricted and prohibited waters near Kinmen County on Friday and again on Saturday. A State Department spokesperson said that Washington was aware of the incidents, and urged all parties to exercise restraint and refrain from unilaterally changing the “status quo.” “Maintaining peace and stability across the Taiwan Strait is in line with our [the
EXTENDED RANGE: Hsiung Sheng missiles, 100 of which might be deployed by the end of the year, could reach Chinese command posts and airport runways, a source said A NT$16.9 billion (US$534.93 million) project to upgrade the military’s missile defense systems would be completed this year, allowing the deployment of at least 100 long-range Hsiung Sheng missiles and providing more deterrence against China, military sources said on Saturday. Hsiung Sheng missiles are an extended-range version of the Hsiung Feng IIE (HF-2E) surface-to-surface cruise missile, and are believed to have a range of up to 1,200km, which would allow them to hit targets well inside China. They went into mass production in 2022, the sources said. The project is part of a special budget for the Ministry of National Defense aimed at
READY TO WORK: Taiwan is eager to cooperate and is hopeful that like-minded states will continue to advocate for its inclusion in regional organizations, Lai said Maintaining the “status quo” in the Taiwan Strait, and peace and stability in the Indo-Pacific region must be a top priority, president-elect William Lai (賴清德) said yesterday after meeting with a delegation of US academics. Leaders of the G7, US President Joe Biden and other international heads of state have voiced concerns about the situation in the Strait, as stability in the region is necessary for a safe, peaceful and prosperous world, Lai said. The vice president, who is to be inaugurated in May, welcomed the delegation and thanked them for their support for Taiwan and issues concerning the Strait. The international community
COOPERATION: Two crewmembers from a Chinese fishing boat that sank off Kinmen were rescued, two were found dead and another two were still missing at press time The Coast Guard Administration (CGA) was yesterday working with Chinese rescuers to find two missing crewmembers from a Chinese fishing boat that sank southwest of Kinmen County yesterday, killing two crew. The joint operation managed to rescue two of the boat’s six crewmembers, but two were already dead when they were pulled from the water, the agency said in a statement. Rescuers are still searching for two others from the Min Long Yu 61222, a boat registered in China’s Fujian Province that capsized and sank 1.03 nautical miles (1.9km) southwest of Dongding Island (東碇), it added. CGA Director-General Chou Mei-wu (周美伍) told a