Crude oil prices plunged this week as traders fretted that a global economic slowdown could dent energy demand, but gold hit a one-month high as many investors sought a safe haven for their cash.
Elsewhere, wheat came off last week’s two-year highs reached following news that major exporter Russia had banned grain exports after a record drought ravaged crops.
OIL: Prices dived under US$76 as the market was slammed by growing pessimism over the economic outlook despite upbeat growth data in Europe.
“The ghosts of a global economic slowdown are back and haunting the oil market again,” Barclays Capital analyst Amrita Sen said in a note.
Data showed on Friday that the German economy grew 2.2 percent in the second quarter, the biggest quarterly expansion since reunification in 1990. In addition, economic growth across Europe’s core euro currency zone hit 1 percent in the second quarter.
Meanwhile, OPEC revised upward its world oil demand growth estimate for this year to 1.2 percent.
OPEC warned, however, that slower economic growth in the second half of the year, caused by a phasing out of fiscal stimulus, would likely affect demand.
By late Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in September tumbled to US$75.58 a barrel from US$81.91 the previous week.
On London’s Intercontinental Exchange, Brent North Sea crude for September nose-dived to US$75.28 compared with US$81.30.
GRAINS AND SOYA: Wheat prices steadied after striking a two-year peak late last week when Russia decided to ban exports until the end of the year.
Wheat soared to US$8.68 a bushel on Aug. 6 for the December contract — the highest level since August 2008.
By Friday on the Chicago Board of Trade, wheat for delivery in December had eased to US$7.48 a bushel from US$7.55 the previous week.
Maize for December rose to US$4.28 a bushel from US$4.20.
November-dated soyabean meal — used in animal feed — increased to US$10.42 from US$10.33.
PRECIOUS METALS: Gold struck a one-month high at US$1,217.65 per ounce, garnering support from its safe-haven status.
By late Friday on the London Bullion Market, gold advanced to US$1,214.25 an ounce from US$1,207.75.
Silver eased to US$18.06 an ounce from US$18.30.
On the London Platinum and Palladium Market, platinum dipped to US$1,527 an ounce from US$1,571. Palladium decreased to US$473 an ounce from US$491.
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