19.05.2008 11:17

COMMODITY: weekly review

Oil rose to a new record at $127,82 last week after Goldman Sachs Group Inc. raised its oil price estimate for 2008 to $141 per barrel on supply concerns. China may increase fuel imports to generate power after the most powerful earthquake in 58 years killed more than 22,000 and damaged hydroelectric plants. Oil and commodities, including gold and platinum, also advanced on the falling dollar. PetroChina International Co., the trading unit of PetroChina Co., the country's biggest oil producer, has already purchased 2.9 million barrels of diesel for June. That's in addition to the 1.45 million barrels that China International United Petroleum & Chemicals Corp. bought for the month.
Prices fell from the Friday’s high after Saudi Arabia's oil minister, Ali al-Naimi, said his country will increase crude oil production by 300,000 barrels a day to 9.45 million barrels a day next month in response to customer requests. Saudi Arabia is the world's largest oil exporter and the most influential member of the Organization of Petroleum Exporting Countries.

Crude oil for June delivery rose to $126.29 a barrel, a record close. Futures touched $127.82 Friday, the highest since trading began in 1983. Prices are up 0.3% for the week and have more than doubled in the past year. Brent crude oil for July settlement rose to $124.99 a barrel, a record close. The contract touched an all-time high of $126.34 Friday.

Gold rose the most in 10 weeks as energy costs surged to a record and the dollar weakened, boosting the appeal of the precious metal as a hedge against inflation. Gold rose the most in 10 weeks as energy costs surged to a record and the dollar weakened, boosting the appeal of the precious metal as a hedge against inflation. Gold gained 31% last year as a 57% rise in oil prices contributed to the biggest increase in consumer costs in 17 years. Gold is still cheap relative to oil, which has doubled in the past year, analysts say. In 2007, gold moved in tandem with oil 92% of the time, according to Bloomberg data. In the past two months, gold has dropped 10%, while oil has climbed 14%.