LONDON: Oil prices jumped late Friday onIransupply tensions, but most commodities fell this week as worse-than-expected economic data fromChinaandEuropestoked concerns over global demand.
Crude oil briefly surged, as traders seized on reports that Iranian exports were expected to fall this month, before trimming gains ahead of the weekend.
Most markets were weighed down on Thursday by news that manufacturing activity in China, the world's number two economy, had hit a four-month low.
HSBC bank said its Purchasing Managers' Index (PMI) for China slid to 48.1 in March, compared with a final reading of 49.6 in February. A reading above 50 indicates the sector is expanding while a number below 50 suggests contraction.
The figures -- which come after Beijing reported a huge February trade deficit and leaders lowered their growth target for the year -- added fuel to fears that China's economy is losing its strength.
In more bad news, a composite PMI of manufacturing and services for the 17-nation eurozone by the Markit research firm fell more sharply than expected in March, pointing to a recession.
The survey of 4,500 manufacturing and services firms slowed to 48.7 in March after reaching 49.3 in February.
"The week has reflected choppy moves across the commodity complex and prices are posting broad-based weakness by the end of the week," said Barclays Capital analyst Sudakshina Unnikrishnan.
"Commodity markets have come under pressure from China's PMI, which stayed below 50 for a fifth consecutive month, and a weak euro-area PMI reading."
OIL: World oil prices staged a late burst on Friday to end the week in positive territory as the market was rattled by jitters over supplies from key producer Iran.
New York's West Texas Intermediate crude jumped to $108.25 a barrel -- the highest level since March 2 -- and London Brent oil rallied as high as $127.06.
"The market remains nervous and very choppy indeed. Volatility spiked after news emerged of a drop in Iranian exports in March," VTB Capital analyst Andrey Kryuchenkov told AFP.
"There was little direction from elsewhere and the market remains sensitive to any supply side jitters."
Crude futures also rebounded on Friday after slumping the previous day on concern that elevated oil costs could hurt the global economic recovery.
Prices sank Thursday following weak Chinese and European manufacturing figures, and also after France said industrialised countries were considering the release of crude stockpiles.
The standoff between the West and Iran, meanwhile, continues to be a key factor affecting the market.
President Barack Obama declared Friday that tension with Iran and "uncertainty" in the region was adding a $20 or $30 premium to oil prices, pushing up gas prices for vehicle owners in the United States.
"The key thing that is driving higher gas prices is actually the world's oil markets and uncertainty about what's going on in Iran and the Middle East, and that's adding a $20 or $30 premium to oil prices," Obama said in an interview with the American Automobile Association (AAA) published Friday.
Washington pushed this week for a tough new set of sanctions on Iran aimed at pressing the state over its nuclear programme, penalising foreign financial institutions over transactions with Tehran's central bank which handles the country's oil sales, its key export.
Tehran has threatened to shut the strategic Strait of Hormuz -- a conduit for a fifth of the world's oil supply -- if it faces additional economic sanctions from the West for its controversial nuclear programme.
Much of the international community believes that Iran's nuclear programme is geared towards obtaining an atomic weapon but Tehran denies the charges, saying it is for civil power generation and medical purposes only.
By late Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in May stood at $125.35 a barrel from $124.83 the previous week.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for May rallied to $108.25 a barrel, compared with $106.23 for the April contract the previous week.
PRECIOUS METALS: Prices dropped to their lowest levels for around two months, but gold pulled back into positive territory thanks to the weaker dollar and bargain-hunting, dealers said.
"Precious metals ... were unable to resist the downward spiral on the commodities," said Commerzbank analyst Carsten Fritsch.
By late Friday on the London Bullion Market, gold rose to $1,664 an ounce from $1,658 the previous week.
Silver dipped to $31.54 an ounce from $32.27.
On the London Platinum and Palladium Market, platinum decreased to $1,617 an ounce from $1,677.
Palladium slid to $658 an ounce from $703.
BASE METALS: Base metals prices fell across the board in reaction to poor Chinese data.
"Prices remain under pressure as China pessimism remains a common theme in the marketplace," noted Barclays Capital analyst Amrita Sen.
By late Friday on the London Metal Exchange, copper for delivery in three months fell to $8,405 a tonne from $8,648 the previous week.
Three-month aluminium decreased to $2,183 a tonne from $2,274.
Three-month lead dipped to $2,183 a tonne from $2,274.
Three-month tin sank to $22,401 a tonne from $23,800.
Three-month nickel declined to $18,378 a tonne from $19,221.
Three-month zinc dropped to $2,000 a tonne from $2,102.
COCOA: Prices rose on fresh concern over output from Ivory Coast, which is the world's top producer of the commodity used to make chocolate.
"Bucking the general trend on the commodities markets, the cocoa price on the ICE climbed ... amid renewed fears that the drought in Ivory Coast may reduce the volume and quality of cocoa beans in the forthcoming interim harvest in the world's largest producer country.
"According to the International Cocoa Organization, global demand for cocoa in the crop year 2011/12 will be 71 thousand tons higher than global production, which is set to be 8.0-percent down year-on-year."
By Friday on LIFFE, London's futures exchange, cocoa for delivery in May climbed to £1,479 a tonne from £1,432 a week earlier.
In New York on the NYBOT-ICE, cocoa for May advanced to $2,303 a tonne from $2,175.
COFFEE: New York Arabica coffee prices hit another 17-month low at 174.45 cents a pound, dampened by the prospect of a strong harvest from Brazil.
By Friday on NYBOT-ICE, Arabica for May fell to 177.80 US cents a pound from 185.40 cents.
On LIFFE, Robusta for delivery in May dropped to $1,995 a tonne from $2,040 a week earlier.
SUGAR: Sugar futures stabilised in subdued deals.
By Friday on LIFFE, the price of a tonne of white sugar for May eased to $670 from $670.40 the previous week.
On NYBOT-ICE, the price of unrefined sugar for delivery in May firmed to 25.68 US cents a pound from 25.57 cents a week earlier.
GRAINS AND SOYA: Corn and wheat fell, while soyabean finished the week with slender gains.
By Friday on the Chicago Board of Trade, maize for delivery in May eased to $6.42 a bushel from $6.47 a week earlier.
Wheat for May dipped to $6.36 a bushel from $6.42.
May-dated soyabean meal -- used in animal feed -- rose to $13.62 a bushel from $13.52.
RUBBER: The market declined as dealers tracked lower oil prices.
The Malaysian Rubber Board's benchmark SMR20 fell to 367.30 US cents a kilo from 374.80 cents the previous week.
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