Oil prices extend collapse; gold gains
London (AFP) - Global oil prices tumbled to fresh five-year low points this week, while gold won support from its tatus as a haven investment in times of economic unrest, traders said.
European stock markets slumped, dragged down by oil's plunge and renewed concerns over the eurozone economy.
The European Central Bank pumped more liquidity into the financial system Thursday via private-sector loans but analysts said uptake by banks was disappointing and increased pressure for it to do more.
The Frankfurt-based central bank said 306 banks had borrowed 129.8 billion euros ($162 billion) under the second round of a lending programme aimed at boosting the moribund eurozone economy and halting a stubborn drop in inflation.
By contrast, a strong US retail sales report reinforced investor confidence in the world's largest economy. A stronger dollar on the back of upbeat US data meanwhile added to pressure on commodities after dollar-denominated raw materials were made more expensive for holders of rival currencies.
- Oil dives -
OIL: Prices notched up their latest troughs on Friday, after a gloomy crude demand downgrade from the International Energy Agency (IEA) and more weak Chinese economic data.
US benchmark West Texas Intermediate (WTI) for January delivery plunged to $57.34 per barrel -- the lowest level since May, 2009 -- having already closed under the psychological level of $60 on Thursday.
Brent North Sea crude for January dived to $61.35 in London deals, striking a low point last witnessed in July, 2009.
The oil market -- which has shed almost 50 percent since June -- plumbed the latest lows after the Paris-based IEA slashed its 2015 demand outlook, despite plunging prices.
Demand is set to grow by 0.9 million barrels a day to reach 93.3 million barrels, some 230,000 barrels less than the previous forecast, the IEA energy watchdog said in a report.
"Oil prices continue to dominate the markets as the IEA lowered oil demand expectations for the fourth time in five months," said IG analyst Alastair McCaig.
The oil market has collapsed over the past six months on plentiful supplies, a stronger dollar and weak demand arising from the struggling global economy.
Losses accelerated in late November after the influential OPEC oil producers' cartel decided to leave its crude output ceiling unchanged, despite oversupply and booming US shale energy production.
The market had already struck fresh lows Wednesday after OPEC also revised down its forecast for global crude demand growth next year.
OPEC said demand for its crude would fall to 28.92 million barrels a day next year, the lowest level since 2003 and at least one million barrels less than it is producing now. Yet it showed no sign of cutting production.
Markets were hit Friday also after China said industrial output expanded at its slowest pace in three months in November, while fixed asset investment, a measure of government spending on infrastructure, was also easing.
The figures come in the same weak as data showing November inflation at a five-year low, imports shrinking and exports growth sharply slower.
By Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in January sank to $62.11 a barrel compared with $68.36 one week earlier.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for January dived to $58.15 a barrel from $65.31 a week earlier.
- Gold shines briefly -
PRECIOUS METALS: Gold began the week strongly before fading.
"Gold... found support from the deterioration in risk appetite and also a weaker US dollar," said Fawad Razaqzada, analyst at brokers Forex.com.
By late Friday on the London Bullion Market, the price of gold rose to $1,217 an ounce from $1,194 a week earlier.
Silver gained to $17.07 an ounce from $16.33.
On the London Platinum and Palladium Market, platinum stood at $1,231 an ounce, unchanged from the previous week.
Palladium increased to $818 an ounce from $806.
BASE METALS: Base or industrial metals mainly slumped, dragged down by oil's plunge and as a result of poorly-received Chinese economic data.
"Crude oil is the most important traded commodity by value and the largest component of commodity indices. It is natural therefore to think that short-term fluctuations in its price are likely to impact other commodities, including metals," noted analysts at Macquarie financial group in a note to clients.
By Friday on the London Metal Exchange, copper for delivery in three months edged up to $6,467 a tonne from $6,453 a week earlier.
Three-month aluminium declined to $1,942 a tonne from $1,991.25.
Three-month lead dropped to $1,989.50 a tonne from $2,031.
Three-month tin grew to $20,400 a tonne from $20,325.
Three-month nickel slid to $16,471 a tonne from $16,940.
Three-month zinc decreased to $2,187 a tonne from $2,238.75.
COCOA: Prices retreated with supplies higher thanks to harvesting in Ivory Coast and Ghana.
By Friday on LIFFE, London's futures exchange, cocoa for delivery in March fell to £1,887 a tonne from £1,922 a week earlier.
On the ICE Futures US exchange, cocoa for March dropped to $2,861 a tonne from $2,887 a week earlier.
SUGAR: Futures were mixed against a backdrop of high supplies.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March dipped to $394.30 from $395.20 a week earlier.
On ICE Futures US, the price of unrefined sugar for March rose to 15.18 US cents a pound from 15.14 US cents a week earlier.
COFFEE: Prices fell further.
By Friday on ICE Futures US, Arabica for delivery in March dropped to 175.95 US cents a pound from 181.75 cents one week earlier.
On LIFFE, Robusta for March slid to $1,973 a tonne from $2,049 a week earlier.
RUBBER: Kuala Lumpur rubber prices fell.
The Malaysian Rubber Board's benchmark SMR20 slipped to 143.65 US cents a kilo from 148.10 US cents the previous week.
