Brent oil prices hit a four-year low this week due to plentiful crude supplies and demand fears arising from global economic uncertainty.
Many commodities were hit by grim economic data, particularly from Germany and the IMF’s warning that the eurozone could tip into recession.
On the upside, the coffee market hit a two-year peak as a “devastating” drought in key producer Brazil slashed supplies, analysts said.
OIL: Brent prices dove to a four-year trough on Friday, extending this week’s sharp falls as worries intensified over the demand outlook.
Brent North Sea oil struck US$88.11 a barrel, the lowest since Dec. 1, 2010, while New York’s light, sweet crude hit US$83.59 per barrel — a level last seen on July 3, 2012.
Both contracts have now plunged by about one-fifth since striking their yearly peaks in June.
Crude futures tumbled as fresh evidence of economic weakness in the eurozone added to concerns over slowing global growth and abundant oil supplies.
Sentiment was also hit by stubborn worries over the Ebola outbreak in West Africa, ample global supplies owing to increased US shale production and a return to the market of Libyan oil after prolonged disruption due to civil unrest.
In the US, a key report also showed rising crude inventories, signaling weakening demand in the world’s top oil consumer.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery next month sank to US$89.85 a barrel, compared with US$91.88 one week earlier.
On the New York Mercantile Exchange, West Texas Intermediate, or light sweet crude, for next month fell to US$85.68 from US$89.67.
PRECIOUS METALS: Gold gained more ground, boosted by its haven status and the faltering US dollar.
“Precious metals and platinum group metals received a boost from the weaker [US] dollar and rising uncertainty in the stock markets together with falling bond yields,” Saxo Bank analyst Ole Hansen said.
The weaker greenback makes US dollar-priced commodities cheaper for buyers using stronger currencies.
By late on Friday on the London Bullion Market, gold had risen to US$1,219 an ounce from US$1,195 a week earlier, as silver increased to US$17.26 an ounce from US$16.97.
On the London Platinum and Palladium Market, platinum gained to US$1,256 an ounce from US$1,249, while palladium firmed to US$784 an ounce from US$763.
COFFEE: Arabica prices soared to a 2012 peak as a drought devastated crops in top global producer Brazil.
Arabica coffee jumped to US$0.22550 per pound (0.45kg), the highest level since January 2012, while robusta rallied to a seven-month peak at US$2,200 per tonne.
By Friday on ICE Futures US, arabica for delivery in December rallied to US$0.22080 a pound from US$0.20945 a week earlier.
On LIFFE, London’s futures exchange, robusta for next month rebounded to US$2,186 a tonne from US$2,065 a week earlier.
RUBBER: Kuala Lumpur prices rose in subdued trading conditions.
The Malaysian Rubber Board’s benchmark SMR20 stood at US$0.14250 per kilo on Friday, up from US$0.14185 last week.
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