|
Crude climbs to record high end of july { July 27 2004 } Original Source Link: (May no longer be active)
http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1087374009283&p=1012571727085http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1087374009283&p=1012571727085
Crude climbs close to record high
By Kevin Morrison
Published: July 27 2004 11:17 | Last Updated: July 27 2004 20:19
Crude oil futures on Tuesday moved within striking distance of the record highs reached last month as the tighter balance between supply and demand helped push prices higher.
September Nymex WTI peaked at $42.22 a barrel, or just 23 cents below its peak reached on June 2, before settling at $41.84, a gain of 40 cents in New York.
IPE Brent for September delivery added 43 cents to $38.54 a barrel in late London trade, down from its intra-day peak of $38.68 a barrel, but still within sight of the 13½ year high of $39.12.
The head of one oil trading desk in London said that prices had been rising gradually over the past two weeks in anticipation that the expected increase in demand in the third quarter from the previous quarter would lead to a tightening of supply as global oil production struggled to keep pace with increased levels of consumption.
"There have been no sudden sharp spikes in prices to get back to $42. This rise has been slower and looks more sustained than the previous moves to this level," said the oil trader.
The gains in the oil price came ahead of today's release of the weekly US commercial crude inventories, which are expected to show a fall in crude and gasoline inventories.
Gold fell about $4 to $387.20/$387.40 a troy ounce from its late quote in New York on Monday following a rise in the dollar.
However, HSBC, the world's largest bullion bank, predicted the price of the metal to rise over the next 2½ years due to a weaker dollar against the euro.
HSBC estimates bullion to average $404 an ounce in 2004 and $430/oz in 2005, and $450 in 2006.
"Any currency-driven gains will be made against the headwinds of a continued surplus in the physical market," said Alan Williamson, precious metals analyst at HSBC.
Mr Williamson said that last year the gold market was in oversupply by 600 tonnes, and a further surplus of more than 300 tonnes is estimated this year.
"Gold demand has been falling steadily since peaking in 1997. Although the industry would like to think this is largely a result of the high and volatile prices, the reality is that consumption was also falling in periods of low and stable prices," he said.
Barrick Gold, the Canadian gold miner, once a cheer-leader for hedging its output, said it would reduce its hedge position by 850,000 ounces to 13.9m ounces during the June quarter.
Wheat futures fell to a 12-month low of $3.195 a bushel on the Chicago Board of Trade on prospects of a good harvest in the US. Wheat harvesting season starts next month.
|
|
