Commodity markets moved higher this week on upbeat US data and rising stock markets, given a boost after the IMF ramped up its global growth forecast for this year, analysts said.
“Commodity prices have returned to positive territory in recent days, although fragile sentiment on the broader macro-economy remains,” Barclays Capital research analyst Sudakshina Unnikrishnan said.
OIL: Crude prices rebounded, topping US$76 on positive investor sentiment amid hopes of sustained solid energy demand.
“This week, crude oil prices rebounded and traded above US$76 per barrel, buoyed by the recent rally in the global equities markets,” analyst Myrto Sokou at the Sucden brokerage in London said. “It looks like we have seen the bottom [of the market] as this week crude oil prices tested a four-week low near US$71 but easily recovered.”
Stronger demand in the US, shown by a drop in crude inventories there, also helped push prices higher.
“A slightly better IMF world growth outlook helped support both equities and commodity markets,” said Andrey Kryuchenkov, an analyst for Russian financial group VTB Capital.
The market was buoyed by a regular report showing that US crude oil reserves plunged almost 5 million barrels in the week ending July 2, much more than expected as Gulf of Mexico production was impacted by Hurricane Alex last week.
By late Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in August had jumped to US$76.04 a barrel from US$72.98 the previous week.
On London’s Intercontinental Exchange, Brent North Sea crude for August delivery climbed to US$75.39 from US$72.38.
PRECIOUS METALS: Precious metals held steady, with gold creeping higher after recently striking a record high.
By late on Friday on the London Bullion Market, gold had firmed to US$1,208.75 an ounce from US$1,201.50 the previous week. Silver slid to US$17.87 an ounce from US$17.98.
On the London Platinum and Palladium Market, platinum edged up to US$1,527 an ounce from US$1,516.
Palladium increased to US$454 an ounce from US$433.
BASE METALS: Prices of industrial metals rose across the board.
“Metal prices are still getting support from a slightly weaker US dollar and firmer equity markets, in the Asian region especially,” Commerzbank analysts said in a research note.
COFFEE: Coffee futures steadied, just two weeks after hitting 12-year peaks amid a tight supply situation.
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