Oil prices strengthen on supply increase<\/p>\n
LONDON (AFP): Crude prices bounced back after the kingpin OPEC
\nproducers gathered in Vienna agreed to a modest increase in
\nsupply and dismissed the price-setting formula that had been
\ndrafted earlier this year.<\/p>\n
Crude oil prices surged above 30 dollars in London and rose
\nabove US$32 in New York as the market reacted to the dismissal by
\nOPEC of a price-setting mechanism and to a promise of a modest
\nproduction increase.<\/p>\n
In London, the price of benchmark Brent crude for August
\ndelivery rose to 30.41 dollars a barrel (for August delivery)
\nfrom 28.73 dollars.<\/p>\n
In New York, light sweet crude for August delivery rose to
\n32.19 dollars a barrel from 31.82 dollars a barrel.
\nPrices touched 32 dollars in London and 33 dollars in New York
\nmidweek.<\/p>\n
The price rise was a reflection of market belief that the
\npledge by OPEC to increase production by 708,000 barrels per day
\nfrom July 1 was insufficient to soothe overheating world oil
\nmarkets.<\/p>\n
Dealers were also dismayed by OPEC's decision not to abide by
\na recently-set mechanism designed to moderate prices.<\/p>\n
Gold: tarnished. Gold prices fell back in thin trading volumes
\nunder the weight of a strengthened dollar after the currency
\nlosses of the previous week were reversed.<\/p>\n
The spot price on the London Bullion Market weakened to
\n$285.30 from $290.30 an ounce.<\/p>\n
While a stronger dollar came to afflict international demand
\nfor the dollar-denominated contracts, the losses were contained
\nby the rise in oil prices, as the traditional link with \"black
\ngold\" showed its face once more.<\/p>\n
Silver: slipper. Silver prices fell to their lowest level for
\n1-1\/2 years mid-week, swept lower by gold, before recovering a
\nlittle of the lost ground before the week's end.<\/p>\n
Cash prices on the London Bullion Market fell to $4.93 from
\n$5.06 an ounce.<\/p>\n
Platinum and palladium: shine. Platinum prices soared to 11-
\nyear highs as Russian exports continued to remain few and far
\nbetween on the international markets.<\/p>\n
Platinum rose to $572 an ounce from $542.<\/p>\n
In contrast, palladium prices fell back slightly on the London
\nmarket. Cash prices slipped to $660 an ounce from $669.<\/p>\n
Base metals: heavy. The price of most base metals fell back
\nslightly in the wake of nickel, which dipped to an eight-month
\nlow as the draw-down of market reserves began to slow and on
\nreduced demand from Asia and the United States.<\/p>\n
Three-month nickel prices on the London Metal Exchange fell to
\n$7,740 a ton from $8,240.<\/p>\n
Three-month copper remained unchanged at $1,788 a ton.<\/p>\n
Aluminum fell to $1,562 a ton from $1,569 a ton.<\/p>\n
Zinc slipped to $1,141 a ton from $1,142.5.<\/p>\n
Lead fell to $433 from $439 a ton.<\/p>\n
Tin rose to $5,540 a ton from $5,455.<\/p>\n
Rubber: bounce. Rubber prices rose slightly amid thin trading
\nvolumes.<\/p>\n
In Kuala Lumpur, the RSS1 index rose to 2.68 ringgit per kilo
\nfrom 2.66 ringgit. The SMR20 index held at 2.30 ringgit.<\/p>\n
The London rubber index rose by 10 pounds to 517.5 pounds per
\nton.<\/p>\n
Cocoa: hot. Cocoa prices rose back from recent losses as
\ndealers feared for the political stability of Cote d'Ivoire, the
\nworld's leading producer, and in Indonesia, another important
\nproducer country that has been racked by internecine violence.<\/p>\n
In London, September contracts rose to 659 pounds a ton from
\n656 pounds.<\/p>\n
Dealers were keenly awaiting news of the forthcoming harvest
\nin west Africa.<\/p>\n
Coffee: blend. Coffee prices remained under pressure, close to
\neight-year lows, inspite of frost in some regions of Brazil.
\nIn London, Robusta prices rose by four dollars to $907 a ton.<\/p>\n
In contrast in New York, Arabica (for September delivery) fell
\nto 89.50 cents a pound from 91.35 cents.<\/p>\n
Although some frosts were reported in southern Brazil, market-
\nwatchers said that there had been little damage caused to
\nplantations there.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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