World oil prices hit ten-month peaks

World oil prices hit ten-month peaks last week on US supply woes, while cocoa soared as investors reacted to unrest in major producer Ivory Coast. Lead prices, which were lifted by low global inventories, rocketed to a fresh record high above the price for the traditionally more expensive base metal aluminium.
OIL: World oil prices rallied, with New York crude trading above 70 dollars a barrel for the first time since late August 2006 on supply concerns in the United States, the world's biggest consumer of energy.
On Friday, New York crude struck 70.75 dollars - the highest level since August 28. "It looks like the US is not out of the woods yet" regarding supplies, said Mitsubishi Corp analyst Tony Nunan. Crude prices had closed more than a dollar higher on Wednesday after the US Department of Energy (DoE) reported that American gasoline (petrol) stockpiles fell by 700,000 barrels to 202.6 million barrels in the week ending June 22.
That surprised the market, as analysts had expected a gain of 1.0 million barrels. Gasoline reserves are in focus because of the US summer driving season when demand typically peaks as many Americans take to the roads for their annual vacations. US gasoline inventories are running well below the lower end of the average range for this time of year, the DoE added in its weekly market update.
World oil prices had begun the week lower, as traders expressed relief at the end of a general strike in Nigeria that had threatened exports from the sixth-biggest crude producer in the world.
Nigerians returned to work last Monday, two days after the country's two main trade unions ended a four-day general strike that had paralysed economic and commercial activities. Elsewhere, analysts said this week that high international oil prices may have forced China to postpone filling at least one of its much-anticipated strategic oil reserves.
China, the world's second-largest importer of oil, has seen its demand for energy rocket as a result of its explosive economic growth, which has been double-digit for four consecutive years. The Middle East has traditionally been China's main source of oil, but the country has sought energy elsewhere since the US-led invasion of Iraq in 2003, which has fuelled unrest across the region.
Brent North Sea crude for August delivery rose to 71.00 dollars a barrel on Friday, from 70.96 dollars a barrel a week earlier. New York's main oil futures contract, light sweet crude for delivery in August, climbed to 70.25 dollars a barrel, from 69.20 dollars a barrel.
GOLD: The price of gold touched a three-month low of 639.50 dollars an ounce on Tuesday - a level last seen on March 14. "Some light profit taking has been seen," noted analyst James Moore at specialist metals website TheBullionDesk.com.
He added: "As we move into the (northern hemisphere) summer, a time when physical buying traditionally slows, gold will remain vulnerable to further bouts of weakness." Rising oil prices meanwhile failed to boost gold, which normally benefits because the precious metal is seen as a safe store of value in times of high inflation. On the London Bullion Market, gold dropped to 650.50 dollars an ounce at Friday's late fixing, from 652.85 dollars a week earlier.
SILVER: Silver prices shed almost 5.0 percent in value, mirroring gold's losses. The metal sank as low as 12.13 dollars per ounce on Tuesday, marking the lowest point since early January.
Silver is both a precious and an industrial metal, used in the production of jewellery, and in the photographic and dentistry sectors. On the London Bullion Market, silver slid to 12.54 dollars an ounce at Friday's late fixing, from 13.15 dollars a week earlier.
PALLADIUM AND PLATINUM: The sister metals both fell in the wake of gold and silver, but losses were capped by looming industrial action in key producer South Africa. However, the prices of palladium and platinum "remain underpinned by ongoing wage negotiations in South Africa," said Barclays Capital analysts.
On the London Platinum and Palladium Market, platinum fell to 1,273 dollars an ounce at the late fixing Friday, from 1,301 dollars a week earlier. Palladium sank to 365 dollars an ounce, from 375 dollars.
BASE METALS: Lead prices surged to another historic peak. Lead, which is used extensively for batteries and in the automotive industry, hit a record 2,745 dollars per tonne on Tuesday.
Surprisingly, the metal is now more expensive than aluminium. "It certainly is the first time in recent history, the past 20 or 30 years" that lead has overtaken aluminium in value, said BaseMetals.com analyst William Adams.
Sucden analyst Michael Davies added: "Although current fundamentals (of keen demand and low supplies) are supportive to lead prices, it is speculators who drive lead's price to record highs. "Many fear that further potential for the upside could come from output cuts in China because of rising prices of lead concentrate."
The prices of copper, meanwhile, advanced owing to a series of copper strikes in key producers Peru, Chile and Canada. On Friday, the price of copper for delivery in three months rose to 7,520 dollars a tonne on the London Metal Exchange, from 7,470 dollars a week earlier. Three-month aluminium prices climbed to 2,736 dollars a tonne, from 2,709 dollars.
Three-month nickel prices slid to 35,810 dollars a tonne, from 37,550 dollars. Three-month lead prices leapt to 2,645 dollars a tonne, from 2,353 dollars. Three-month zinc prices declined to 3,326 dollars a tonne, from 3,524 dollars. Three-month tin prices firmed to 13,900 dollars a tonne, from 13,875 dollars.
COCOA: Cocoa prices leapt to four-year peaks after an attack on the plane of Ivory Coast Prime Minister Guillaume Soro, seen as a heavy blow to the divided country's fragile peace process.
Ivory Coast is the world's biggest producer of cocoa for the global chocolate industry. The west African nation produces 40 percent of the world's cocoa, which makes up 35 percent of Ivorian exports. London cocoa prices surged on Friday to 1,118 pounds per tonne - last seen September 2003 - while New York cocoa hit a four-and-a-half year high of 2,066 dollars per tonne.
Friday's attack killed at least four people, but not the prime minister. Three rockets hit the plane as it was landing at Bouake, the base of Soro's New Forces movement which has governed the north of Ivory Coast after failing to oust President Laurent Gbagbo in 2002.
By Friday on the Liffe, the price of cocoa for September delivery rose to 1,115 pounds a tonne, compared to 1,060 pounds a week earlier. On the New York Board of Trade (NYBOT), the September contract jumped to 2,056 dollars a tonne, compared to 1,950 dollars the previous Friday.
COFFEE: Coffee prices fell as investors took profits after the market hit a nine-year peak in London the previous week. However, despite the modest losses, Sucden analyst Michael Davies noted that the market remained "well supported."
In recent weeks, London coffee prices have surged amid market worries over lower exports from Vietnam, which is the world's second-biggest coffee producer after Brazil. By Friday on the Liffe, Robusta quality for September delivery slipped to 1,868 dollars a tonne, from 1,915 dollars a week one week earlier. On the NYBOT, Arabica for September delivery stood at 112.60 US cents a pound, from 115.85 cents.
GRAINS AND SOYA: Grains and soya prices saw mixed fortunes, while next week the focus was expected to fall on weather conditions in major producing nations. "For next week, it'll all be up to the weather again," said Allendale analyst Joe Victor.
"It's getting to a period of time when traders are not only looking to the amount of precipitation but also making sure there is no heat that would come in here and damage pollination for corn."
By Friday on the Chicago Board of Trade, the price of maize for September delivery sank to 3.41 dollars a bushel, from 3.76 dollars a week earlier. Wheat for September delivery rose to 6.29 dollars a bushel, from 6.05 dollars. August-dated soyabean meal - used in animal feed - increased to 8.66 dollars, from 8.04 dollars. On the Liffe, London's futures exchange, the price per tonne of wheat for November delivery advanced to 117.50 pounds, from 112.75 pounds.
SUGAR: Sugar prices were firm after recent losses that were triggered by an abundance of sugar, traders said. According to Davies, the market found some support from a wave of speculative buying. By Friday on the Liffe, the price per tonne of white sugar for August delivery stood at 320.50 dollars, from 319.40 dollars a week earlier. On the NYBOT, the price of unrefined sugar for July delivery firmed to 9.17 US cents a pound, from 9.15 cents.
RUBBER: The price of rubber dropped on improved supplies from key producing countries. "The reasons are mainly due to the raw material coming in, since the weather is good so there is improved supply of raw material from Thailand and Vietnam," said an official with a rubber producing company. On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 208.38 US cents per kilogramme, compared with 213.08 US cents last week.
WOOL: The price of wool extended losses in major producer Australia. The Australian wool market finished the week 2.9-percent lower on average, with the Eastern Index closing at 9.31 Australian dollars a kilogramme.