Oil struck fresh five-year lows this week on the back of a strong US dollar, oversupply fears and major producer Saudi Arabia slashing its export prices.
The market had already dived last week after OPEC left its output ceiling unchanged, despite a global supply glut. Crude futures have now slumped by about 40 percent since June.
Weak economic data added to the pressure, with worse-than-expected manufacturing figures in China, the world’s largest energy consumer.
Commodities were also hit late on Friday as the greenback rallied on data showing the US economy created 321,000 new jobs last month, exceeding expectations.
OIL: Crude futures sank to fresh five-year lows on Monday, with New York crude hitting US$63.72 a barrel — the lowest level since July 2009.
London Brent oil hit an October 2009 low of US$67.53 a barrel, before staging a technical rebound.
Oil dipped on Tuesday after the Iraqi government and autonomous Kurds struck a deal that will boost the nation’s crude oil exports to an already oversupplied market.
The oil market diverged Wednesday as traders digested a drop in US crude inventories, but on Thursday and Friday, it hit reverse gear again, dented by reports that Saudi Arabia has trimmed its export prices and is doing nothing to tighten supplies.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery next month sank to US$68.36 a barrel compared with US$73.05 one week earlier.
On the New York Mercantile Exchange, West Texas Intermediate, or light sweet crude, dived to US$65.31 a barrel from US$69.13.
PRECIOUS METALS: Gold advanced as dealers shrugged off the rallying US dollar and brighter-than-anticipated non-farm payrolls data.
By Friday on the London Bullion Market, the price of gold rose to US$1,194 an ounce from US$1,182.75 a week earlier, while silver gained to US$16.33 an ounce from US$15.97.
On the London Platinum and Palladium Market, platinum stood at US$1,231 against US$1,205. Palladium fell to US$806 from US$809.
COCOA: Prices forged ahead this week as traders shrugged off supply jitters for the commodity that is mostly used to produce chocolate.
By Friday on LIFFE, London’s futures exchange, cocoa for delivery in March rose to ￡1,922 a tonne from ￡1,901 a week earlier.
On the ICE Futures US exchange, cocoa for March increased to US$2,887 a tonne from US$2,862.
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