commodities : Oil strikes new low, gold gains

LONDON: Oil prices tumbled this week, hampered by oversupplies and weak global demand
despite a pick-up for the US economy, traders said.
On Friday official data showed the US unemployment rate fell to 5.6 per cent in December, the
lowest level in six and a half years, as the country capped its best year for job creation since
1999.
OIL: Crude hit a new 5.5-year low point.
Brent North Sea crude dropped to $48.90 a barrel Friday and the New York price hit $46.85 on
Wednesday the lowest levels since late April 2009.
The move below $50 shows how momentum is everything here, CMC Markets analyst
Michael Hewson told AFP.
With no sign that Opec will do anything about overproduction, it seems likely that we could
well see further declines towards $40 in the coming weeks particularly given that demand
shows no signs of picking up.
A decision last month by the Organisation of Petroleum Exporting Countries, which supplies
about a third of the worlds oil, to leave output unchanged despite the price plunge has rattled the
market in recent weeks.
By Friday on Londons Intercontinental Exchange, Brent North Sea crude for delivery in
February tumbled to $49.67 a barrel from $57.02 the previous week.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for
February slumped to $47.96 a barrel from $53.49.
PRECIOUS METALS: Gold won support from its status as an economic haven amid concerns
for the eurozone.
Falling industrial output and exports suggest Germanys current economic weakness is not over
yet, while concerns persist regarding Greeces future role in the single currency bloc.
By Friday on the London Bullion Market, the price of gold rose to $1,217.75 an ounce from
$1,172 a week earlier. Silver climbed to $16.24 an ounce from $15.71.

On the London Platinum and Palladium Market, platinum grew to $1,225 an ounce from $1,193.
Palladium edged up to $795 an ounce from $791.
BASE METALS: Base or industrial metals mostly slid, hit by a stronger dollar and more poorlyreceived Chinese data. Copper was additionally hit by high stockpiles, analysts said.
Sliding oil prices weighed on aluminium, with higher production of the metal forecast owing to
the cheaper cost of crude. As the most energy intensive metal to produce, aluminium is
particularly sensitive to the fall in oil and coal prices, said Unicredit in a note to clients.
By Friday on the London Metal Exchange, copper for delivery in three months dropped to
$6,112 a tonne from $6,242.25 the previous week.
Three-month aluminium slid to $1,820.50 a tonne from $1,846. Three-month lead retreated to
$1,839.75 a tonne from $1,860.25. Three-month tin rallied to $19,630 a tonne from $19,275.
Three-month nickel grew to $15,508 a tonne from $14,971.
COCOA: Cocoa futures rebounded from the previous weeks losses, winning support from news
of sliding output in key producer Ghana.
News from Ghana sparked the price rally, said Commerzbank analysts.
In the first 12 weeks of the current crop year 2014/15, this worldwide second-largest cocoaproducing country sold considerably less cocoa than in the corresponding period last year. Sales
of 430,800 tons were reported ... equivalent to a 23pc year-on-year decline.
By Friday on LIFFE, Londons futures exchange, cocoa for delivery in March rose to 2,050 a
tonne from 1,977 a week earlier.
On the ICE Futures US exchange, cocoa for March climbed to $2,993 a tonne from $2,915.
SUGAR: Sugar prices advanced as output was hampered by unfavourable growing conditions in
major producer Brazil. Agriculture commodities lead the table, with sugar and coffee being
supported by dryness in some areas of Brazil, said Saxobank analyst Ole Hansen.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March rose to $390.10
from $380.60 a week earlier.
On ICE Futures US, the price of unrefined sugar for March fell to 14.25 US cents a pound from
14.81.

COFFEE: Coffee prices also won ground on Brazil production concerns.

Futures markets were higher on fund-led buying, tied to expectations for drier than normal
conditions in coffee areas of Brazil for the next couple of weeks, added Price Futures Group
analyst Jack Scoville.
By Friday on ICE Futures US, Arabica for delivery in March rallied to 181.50 US cents a pound
from 161.30 cents a week earlier.
On LIFFE, Robusta for March jumped to $1,992 a tonne from $1,871.
Published in Dawn January 11th , 2014