Oil prices slide, gold steadies

LONDON: Oil prices tumbled this week to four-year lows on expectations that Opec will likely
maintain its production ceiling at the cartels upcoming meeting, despite ample global supplies of
crude.
Crude futures will keep sliding well into 2015, held down by weak demand and increased shale
production, the International Energy Agency (IEA) forecast on Friday, as Brent North Sea crude
struck $76.76 a barrel the lowest level since September 2010.
US benchmark West Texas Intermediate hit also a four-year low at $73.25 a barrel.
Global prices have collapsed by about one third in value since June and were weighed down
further on Thursday after the United States said it had produced 9.063 million barrels of oil last
week the highest production since at least January 1983 when official records began.
Dealers are largely expecting the 12-nation Organisation of Petroleum Exporting Countries to
decide against reducing output when it meets later this month in Vienna, home to the cartels
headquarters.
A production cut by Opec would run against its kingpin Saudi Arabias recent price cuts for
crude exports to the US market.
That move was seen by market observers as an effort to maintain market share as it faces
competition from cheaper oil from US shale fields.
By Friday on Londons Intercontinental Exchange, Brent North Sea crude for delivery in January
stood at $78.77 a barrel compared with $83.64 for the expired December contract one week
earlier.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for
December slumped to $74.92 a barrel from $78.99 a week earlier.
PRECIOUS METALS: Gold prices were stable after recent heavy losses.
Gold consumption meanwhile fell slightly in the third quarter as sliding jewellery demand in
China offset strong growth in India, sector data showed on Thursday.
Overall demand dropped by 2 per cent in the three months ending September 30 to 929.3 tonnes
compared with the third quarter in 2013, the World Gold Council said.

The price of gold traded on the London Bullion Market slumped by 28pc last year. It last week
struck a four-year low, hit by persistent dollar strength.
By late Friday on the London Bullion Market, the price of gold edged up to $1,169 an ounce
from $1,154.50 a week earlier.
Silver fell to $15.35 an ounce from $15.42. On the London Platinum and Palladium Market,
platinum slid to $1,178 an ounce from $1,198. Palladium dipped to $760 an ounce from $763.
BASE METALS: Base or industrial metal prices mostly retreated following poorly-received
Chinese data.
Industrial production, which measures output at factories, workshops and mines, expanded 7.7pc
year-on-year last month, the National Bureau of Statistics (NBS), down from 8pc in September
and below forecasts of 8pc.
By Friday on the London Metal Exchange, copper for delivery in three months decreased to
$6,616.50 a tonne from $6,682 a week earlier.
Three-month aluminium fell to $2,016 a tonne from $2,069. Three-month lead edged up to
$2,020 a tonne from $2,017.50. Three-month tin dropped to $19,830 a tonne from $20,076.
Three-month nickel dipped to $15,392 a tonne from $15,450. Three-month zinc retreated to
$2,242.75 a tonne from $2,249.
COCOA: Prices slid on easing concerns that the Ebola epidemic could badly affect output in key
producers Ivory Coast and Ghana.
By Friday on LIFFE, Londons futures exchange, cocoa for delivery in March fell to 1,877 a
tonne from 1,905 a week earlier. On the ICE Futures US exchange, cocoa for March declined to
$2,822 a tonne from $2,893 a week earlier.
SUGAR: Prices rebounded on expectations of a supply deficit.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March rose to $420.40
from $413.20 a week earlier.
On ICE Futures US, the price of unrefined sugar for March grew to 15.99 US cents a pound from
15.69 US cents a week earlier.
COFFEE: Futures bounced back also on the prospect of an output deficit.

By Friday on ICE Futures US, Arabica for delivery in March stood at 195.80 US cents a pound
compared with 183.65 cents for the December contract one week earlier.
On LIFFE, Robusta for January rallied to $2,083 a tonne from $2,010 a week earlier.
RUBBER: Kuala Lumpur rubber prices rose but Chinese demand worries capped gains.
The Malaysian Rubber Boards benchmark SMR20 advanced to 155.20 US cents a kilo on
Friday from 151.00 US cents the previous week.
Published in Dawn, November 16th, 2014