LONDON: Commodity prices mostly rose this week with oil and gold higher on Ukraine tensions, while nickel stormed to another two-year peak on Indonesia's export ban.
Palladium and platinum also rallied to key highs on intensifying worries about the impact of industrial action in top producer South Africa.
"It has been choppy trading activity for commodity markets this week," Sucden analyst Myrto Sokou told AFP.
Some markets were hit by pressure from the weaker euro, which makes dollar-priced commodities more expensive for buyers in Europe.
The euro tumbled Thursday to $1.3648, the lowest level since February 27, as investors priced in a June interest rate cut from the European Central Bank.
Commodity gains were capped after it emerged that the 18-nation eurozone economy grew by just 0.2 percent in the first quarter.
OIL: Global oil prices barrelled higher on the back of supply worries linked to the Ukraine crisis.
"Brent crude oil prices have had their best week for four weeks on the back of concerns that events in the Ukraine are more likely to get worse than better," said CMC Markets analyst Michael Hewson.
"With new elections next week the prospect of a further escalation seems high, particularly as separatists will be keen to disrupt or delay any attempt to legitimise the current government in their eyes."
The United Nations warned Friday of an "alarming deterioration" of human rights in eastern Ukraine, where the government is battling an insurgency by armed pro-Russian separatists.
Russia declared that Ukraine was on the brink of civil war, making it difficult to hold free and fair elections later this month on May 25.
Any escalation of the conflict could severely disrupt energy supplies and send prices soaring, analysts say, because Ukraine is a vital conduit for Russian oil and gas exports to Europe.
"Exports of Russian oil and gas have not visibly been affected by the instability in Ukraine and the sanctions towards Russia," said SEB commodities analyst Bjarne Schieldrop.
"It is however natural to assume that that the escalating situation has added a risk premium to Brent crude."
This week's oil gains were meanwhile limited by abundant US crude stockpiles.
The Department of Energy said Wednesday that oil stockpiles rose 900,000 barrels in the week ending May 9, indicating an oversupply of crude stocks.
Traders also shrugged off a modest upgrade to 2014 oil demand growth from the International Energy Agency.
The IEA raised its 2014 forecast by 65,000 barrels per day to 92.8 million barrels, largely because of unexpectedly strong first-quarter demand.
By Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in July rose to $109.55 per barrel from $108.09 a week earlier for the June contract.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for June jumped to $101.83 a barrel compared with $100.70.
Nickel hammers new high:
BASE METALS: Nickel struck $21,625 on Tuesday, the highest level since February 2012, and tin also rose as both metals won support from Indonesia's export ban.
"Nickel has been the metals star in terms of price performance this year," said Citi analyst David Wilson.
"This has played out in line with our expectation that a restrictive Indonesian ore export ban would be introduced and adhered to, which in turn would significantly boost 2014 prices."
Nickel however tumbled sharply during the course of the week as many traders cashed in their gains.
Indonesia in January imposed a ban on exports of mineral ore also including copper and bauxite.
The move is one of a series of industrial policies pushed by nationalist politicians who argue that foreign firms reap an inordinate share of the profits from exploiting resources and business opportunities in the fast-growing Indonesian economy.
Other base or industrial metals finished the week in positive territory, boosted by fresh speculative funds.
By Friday on the London Metal Exchange, copper for delivery in three months advanced to $6,891 per tonne from $6,736 a week earlier.
Three-month aluminium rose to $1,777.75 a tonne from $1,765.50.
Three-month lead gained to $2,118.25 a tonne from $2,102.50.
Three-month tin increased to $23,300 a tonne from $23,120.
Three-month nickel tumbled to $19,125 a tonne from $20,100.
Three-month zinc gained to $2,062.25 a tonne from $2,040.
PRECIOUS METALS: Haven investment gold held firm as many investors sought shelter from the Ukraine crisis.
"With the situation in Ukraine continuing to deteriorate after separatists went ahead with referenda on independence last weekend, the volatile situation in the region continues to provide support to gold prices," said Natixis analysts.
Supply worries in South Africa sent palladium surging on Wednesday to $829.35 per ounce, the highest level since August 2011, while sister metal platinum hit a two-month peak at $1,486.88 per ounce.
"Part of the reason for the firmer gold and silver prices is platinum and palladium which have rallied sharply in recent days as a result of the ongoing strikes in South Africa," said Forex.com analyst Fawad Razaqzada.
"The strikes have caused their supply to shrink, providing support to precious metals as a whole."
By Friday on the London Bullion Market, the price of gold rose to $1,291.50 an ounce from $1,291.25 on Friday of the previous week.
Silver increased to $19.33 an ounce from $19.25.
On the London Platinum and Palladium Market, platinum rose to $1,464 an ounce from $1,429.
Palladium advanced to $816 an ounce from $804.
Soft commodities post gains:
SUGAR: Prices rallied on expectations of falling harvests from drought-hit Brazil, which is the top global producer.
"The potential for crop losses in Brazil (is) providing support and the current oversupplied market conditions (is) keeping sellers active," said Price Futures Group analyst Jack Scoville.
He added: "Weather conditions in key production areas around the world are still rated as mostly good except for Brazil. Crop potential in Russia and Ukraine is good despite the tensions between the two countries."
By Friday on LIFFE, London's futures exchange, the price of a tonne of white sugar for delivery in August gained to $492.70 from $467.80 a week earlier.
On ICE Futures US, the price of unrefined sugar for July increased to 18.17 US cents a pound from 17.17 US cents.
COFFEE: The coffee market diverged, with sentiment boosted partly by forecasts of lower output in Brazil and a looming supply deficit.
"Prices have been generally strong in reaction to estimates showing sharply lower production for Brazil and the potential for a significant supply against demand deficit for the coming year," added Scoville.
He added: "The market is still waiting for news of actual harvest yields in Brazil."
By Friday on the ICE Futures US exchange, Arabica for delivery in July rose to 194.10 US cents per pound from 192.45 cents a week earlier.
On LIFFE, Robusta for July reversed to $2,107 a tonne from $2,124.
COCOA: Prices rebounded as investors fished for bargains after recent losses, and eyed the prospects of another deficit amid weather-related supply risks in Africa.
"With a second consecutive global deficit in excess of 100,000 metric tonnes expected in 2013/14, and a rising risk of El Nino bringing drier weather to West Africa in 2014/15, prices are set to strengthen further," said Ecobank analysts.
The El Nino phenomenon, an abnormal warming of surface ocean waters in the eastern Pacific, occurs every two to seven years and causes droughts in some areas and flooding in others.
By Friday on LIFFE, cocoa for delivery in July increased to £1,817 a tonne from £1,789 a week earlier.
On ICE Futures US, cocoa for July rose to $2,901 a tonne from $2,873.
RUBBER: Prices in Kuala Lumpur advanced on news of rising Chinese rubber consumption in the second quarter of the year.
The Malaysian Rubber Board's benchmark SMR20 rose to 170.35 US cents a kilo from 166.75 cents a week earlier.
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