02.06.2008 11:28

COMMODITIES: weekly review

Crude oil fell last week as the dollar rose against the euro. Oil gained 33% this year as a 6.6% drop in the dollar versus the euro made crude and other commodities a better value for buyers in other currencies. Prices declined last week after a government report Thursday showed that U.S. fuel consumption last week fell from a year earlier.
Thursday, oil in New York dropped $4.41, or 3.4% (the biggest decline since March 31). The fall in prices followed an Energy Department report that showed U.S. fuel demand declined 0.7% to 20.5 million barrels a day in the four weeks ended May 23 compared with the same period a year earlier.

Crude oil for July delivery fell 3.7% to settle at $127.35 a barrel. Futures reached a record $135.09 on May 22. Prices have doubled over the past year. Brent crude oil for July settlement fell 2.8% to $127.78 a barrel. The contract touched a record $135.14 on May 22.

Gold declined last week too, falling 3.7%, the most since mid-March, after the dollar rallied against major currencies, and oil fell from a record. The metal reached $1,033.90 an ounce on March 17, the highest ever, as the euro and oil set previous records. Gold futures for August delivery settled at $891.50 an ounce. The metal gained 3.1% in May and has climbed 6.4% in 2008. Silver climbed 1.6% this month and has advanced 13% this year.

Base metals suffered a battering this week and traders cited weak demand from consumers and rising stocks as reasons for the sell-off. Copper fell 3.7% to $7,932 a tonne over the week and aluminium lost 2.1% to $2,936 a tonne.