Oil prices came under pressure this week from concerns about Greece’s future in the eurozone and the possibility of higher Iranian crude supplies.
Gold failed to benefit from its status as a haven investment. US markets were shut on Friday ahead of the July 4 Independence Day celebrations.
OIL: Prices slumped with focus on high US output as traders looked ahead to Greece’s weekend referendum that could determine whether it remains in the eurozone.
Traders are worried about a global supply glut and the first rise in the US oil-rig count this year.
Meanwhile, the US government revealed a surprise weekly build of 2.4 million barrels for the country’s commercial crude inventories.
“This was the first build in stockpiles since the end of April, ending a run of eight weekly declines,” Forex.com technical analyst Fawad Razaqzada said.
Saxo Bank analyst Ole Hansen on Friday added that the US situation, combined with “OPEC producing the most since 2012 ... leaves the upside potential for crude oil [prices] still very limited.”
There are concerns also over a return to the market of Iranian crude.
Talks between six world powers and Iran aimed at curbing the country’s nuclear ambitions were this week handed a deadline extension to Tuesday.
Iran rejects allegations that it has been seeking to develop nuclear arms, and has resisted moves to give the International Atomic Energy Agency unbridled access to sensitive military sites to verify its claims.
Successful outcome of the talks could see the lifting of sanctions that have forced the country to cut by half its oil exports.
The Greece situation has meanwhile weighed on the euro this week, making dollar-denominated crude more expensive for holders of the single currency.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery next month slid to US$60.39 a barrel from US$63.25 a week earlier. On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for August retreated to US$55.41 a barrel from US$59.59 a barrel.
PRECIOUS METALS: Gold struggled to attract demand from investors.
“In spite of the continual uncertainty over the situation in Greece, there remains no signs of increased appetite for gold,” said Jameel Ahmad, chief market analyst at trading group FXTM. “You would normally expect demand for safe-haven assets to improve significantly when events such as the Greece crisis occur, but this has not happened. There is clearly hesitation from buyers to even consider purchasing gold as we approach the timing of a US interest rate rise and the outlook for gold remains weak.”
By Friday on the London Bullion Market, the price of gold eased to US$1,167.95 an ounce from US$1,170.50 a week earlier.
Silver dropped to US$15.64 an ounce from US$15.83.
On the London Platinum and Palladium Market, platinum gained to US$1,083 an ounce from US$1,074.
Palladium grew to US$701 an ounce from US$676.
BASE METALS: Nickel hit a six-year low point at US$10,795 a tonne in a dramatic drop, before pulling back considerably.
Three-month aluminum gained to US$1,728 a tonne from US$1,709.50.
Three-month lead fell to US$1,775 a tonne from US$1,787.
Three-month tin decreased to US$14,400 a tonne from US$14,865.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS