Oil spikes towards 100 dollars after Bhutto murder

LONDON - Oil prices surged towards 100 dollars per barrel this week after Pakistani opposition leader Benazir Bhutto was killed by a suicide bomber.
On Friday, geopolitical jitters and weak US energy stockpiles drove New York crude to 97.92 dollars. That was just 1.37 dollars off the record 99.29 hit on November 21.
Bhutto's assasination on Thursday also sent funds flowing away from equities and into precious metals as investors sought a safer haven for their cash amid fears of spreading turmoil in the region.
Platinum enjoyed another record pinnacle, while gold struck the highest level for one month.
In general, trading volumes were thin due to the Christmas and New Year holidays. Most global commodity markets now have one final trading day -- Monday -- until the start of 2008.

OIL: The oil market appeared set to end 2007 on a high note after striking a record peak near 100 dollars per barrel in November.
The price of crude has sky-rocketed this year from a low point of just below 50 dollars per barrel in January, propelled by tense geopolitical tensions and sliding US energy inventories.
Dealers said Bhutto's killing on Thursday, which plunged the nation into crisis and sparked global condemnation and concern, would have a psychological impact on the market even though the country is not an oil producer.
There would be "very serious impact" as ramifications from the violence in Pakistan -- a key US ally in the "war on terror" -- play out, said Steve Rowles, an analyst with CFC Seymour securities in Hong Kong.
The market was already well-supported by simmering tensions between Turkey and Iraq.
Prices were also bolstered after the US Department of Energy said American crude reserves tumbled by 3.3 million barrels in the week ended December 21.
That marked the sixth weekly decline in a row and was almost double market expectations of a 1.75-million-barrel drop. The United States is the world's biggest energy consumer.
"Oil pushed back up towards the all time highs on the back of a bullish weekly US fuel report and as further geopolitical risk premium was added to prices following the assassination of Benazir Bhutto," said Sucden analyst Nimit Khamar in London.
Oil had hit a record high in November, prompting calls for the OPEC cartel to lift production at its meeting in Abu Dhabi earlier this month.
But the Organization of the Petroleum Exporting Countries refrained from lifting crude output.
On Friday, New York's main oil futures contract, light sweet crude for delivery in February, leapt to 97.61 dollars, compared with 92.19 dollars a week earlier.
Brent North Sea crude for February jumped to 95.68 dollars, compared with 91.74 dollars a week earlier.

GOLD/SILVER: Gold prices hit 835.90 dollars per ounce on Friday, which was the highest level for more than one month, while silver also rose.
So far this year, gold has won 30 percent in value and silver has gained 14 percent.
"The precious metals remained underpinned by dollar weakness and also safe-haven related buying following the assassination of Benazir Bhutto," said James Moore, analyst at TheBullionDesk.com.
He also forecast that gold would smash its all-time record of 850 dollars early next year.
Gains were driven by the falling US dollar, which encourages demand for dollar-priced commodities because it makes them cheaper for buyers using stronger currencies.
Gold also benefited from its safe-haven status, as high oil prices forced many commodity investors to buy the precious metal as they sought to guard against rising inflation.
On the London Bullion Market, gold prices climbed to 833.75 dollars an ounce at Friday's late fixing, from 810.50 dollars a week earlier.
Silver increased to 14.75 dollars an ounce, from 14.28 dollars.

PLATINUM/PALLADIUM: The price of platinum reached a record high 1,545.75 dollars an ounce, aided by production problems and the weak US currency.
"The outlook for platinum still remains incredibly bullish," Moore added.
"The move back into a sizeable supply deficit this year has left the metal vulnerable to supply disruptions, which could become more common place should mineworkers in South Africa continue to protest over mine safety concerns."
The price has been firm since November because of concern about deliveries from South Africa, the biggest producer of the white metal, where production has been affected by accidents and a general strike by miners.
Platinum gained about 37 percent in value this year, while palladium rose by more than 12 percent.
On the London Platinum and Palladium Market, platinum jumped to 1,530 dollars an ounce at the late fixing Friday, from 1,516 dollars a week earlier.
Palladium rose to 364 dollars an ounce, from 355 dollars.

BASE METALS: Several base metals enjoyed a record-breaking 2007 on the back of supply concerns and fierce demand, with nickel, lead and tin hitting historical highs.
But prices have since pulled back as the global credit crisis stoked fears over world economic growth -- and metal demand.
This week, base metals prices mainly rose in muted trade, with the London Metal Exchange (LME) only open on Thursday and Friday due to Christmas.
In 2007, the star performer was lead, which won 52 percent in value. Tin was not far behind with a hefty gain of 41.2 percent and copper increased by 6.4 percent.
On the downside, zinc crumbled by 43.1 percent in value, nickel erased 19 percent and aluminium shed 7.7 percent during 2007.
On Friday, the price of copper for delivery in three months fell to 6,780 dollars a tonne on the LME, from 6,790 dollars on Friday of the previous week.
Three-month aluminium prices rose to 2,430 dollars a tonne, from 2,410 dollars.
Three-month nickel sank to 26,800 dollars a tonne, from 27,050 dollars.
Three-month lead climbed to 2,560 dollars a tonne, from 2,365 dollars.
Three-month zinc gained to 2,410 dollars a tonne, from 2,397 dollars.
Three-month tin advanced to 16,450 dollars a tonne, from 16,425 dollars.

COCOA: Cocoa prices pulled lower this week, after a year in which the commodity hit a four-year peaks owing largely to unrest in Ivory Coast.
In 2007, prices increased by about one fifth in London. The commodity has now risen in value for three successive years.
Next year, all eyes will be on the elections in the world's leading cocoa producer, according to Standard Chartered analysts.
"The outcome of Presidential elections scheduled for the first half of 2008 in the Ivory Coast should be closely watched as an escalation in social tensions could tag a risk premium on the crop," they warned.
But prospects for a bumper harvest in 2008 should dampen prices, they added.
By Friday on the LIFFE, London's futures exchange, the price of cocoa for March delivery slid to 1,050 pounds a tonne, from 1,071 pounds last week.
On the New York Board of Trade (NYBOT), the March cocoa contract sank to 2,059 dollars a tonne from 2,092 dollars.

COFFEE: Coffee prices were stable, but were set to finish 2007 in positive territory.
London prices rose by almost a fifth this year owing to the poor quality of Robusta coffee exports from key exporter Vietnam.
New York prices, meanwhile, were supported by widespread Arabica crop damage in major producer Brazil.
By Friday on the LIFFE, Robusta quality for March delivery eased to 1,892 dollars a tonne, from 1,899 dollars the previous week.
On the NYBOT, Arabica for March delivery receded to 132.75 US cents a pound from 134.15 cents the previous week.

SUGAR: Sugar futures crept higher at the end of a year which saw prices tumble on the prospect of overproduction.
India is on course to overtake Brazil as the world's biggest sugar producer in 2007/2008, according to the International Sugar Organization.
By Friday on the LIFFE, the price per tonne of white sugar for March delivery firmed to 317.90 pounds, from 317 pounds the previous week.
On the NYBOT, the price of unrefined sugar for March delivery edged up to 11.04 US cents a pound, from 11.02 cents the previous week.

GRAINS AND SOYA: Soya prices hit a record high on the prospect of rising demand from Asian economic powerhouse China, analysts said. The price of soya has now rocketed by about 75 percent since the start of the year.
In 2007, wheat prices hit an all-time high in Chicago on fierce global demand and flagging output.
Poor weather in key producing regions -- such as Australia, Canada, the United States and parts of Europe -- slashed wheat supplies and sent prices through the roof, according to analysts.
Corn, or maize, also had an excellent year, buoyed by demand for ethanol, a clean plant-based fuel made from the crop.
By Friday on the Chicago Board of Trade, the price of maize for March delivery gained to 4.55 dollars a bushel from 4.43 dollars the previous week.
Wheat for March delivery fell to 9.13 dollars a bushel, from 9.49 dollars.
January-dated soyabean meal -- used in animal feed -- surged to a record 12.20 dollars from 11.77 dollars.
On the LIFFE, the price per tonne of wheat for May delivery rose to 175 pounds, compared with 167 pounds a week earlier.

RUBBER: Rubber prices rose slightly in thin trade this week amid poor weather conditions that have hurt production in producer Malaysia, which has been badly hit by widespread floods after monsoon rains.
Thailand, Indonesia and Malaysia account for some 80 percent of the world's natural rubber output.
On Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 252.45 US cents per kilogramme from 247.40 cents the previous week.
burs/rfj/rm

12/28/2007 18:07 GMT