Crude oil and wheat prices were lifted this week by intensifying concerns over the Ukraine crisis, while gold advanced as many investors sought shelter from geopolitical tensions. Many commodities also rose on bright economic growth data in the United States, a top consumer of many raw materials including crude oil. The country's economy expanded at an annual rate of 4.2 percent in the second quarter, up from the prior growth estimate of 4.0 percent, official data showed.
"The week started with... elevated risks to oil supply with rising tensions in Libya and Russia," said analyst Rebecca Hermolle at energy consultancy Inenco. "On Thursday, prices tipped above $103 as tensions heightened between Russia and Ukraine, but prices quickly fell back down.
"Ample global supply, and low demand from Europe and China, seem to be outweighing risks from geopolitical crises. Supply remains strong from Iraq despite the conflict in the Middle East." Ukraine and the West said on Thursday that Russian troops are actively involved in supporting pro-Kremlin separatists who have been fighting against Kiev's rule since April. Nato said at least 1,000 Russian troops were on the ground in east Ukraine but Moscow insisted none of its soldiers were in the country.
The United States warned it was considering new sanctions against Russia over the latest development. The stand-off between the neighbours, seen as the worst East-West crisis since the end of the Cold War, has sparked fears of a full-fledged conflict. Such a development could cause energy prices to surge as Russia is the world's number-two oil producer, and Ukraine is a key conduit for Moscow's gas exports to Europe. By Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in October rose to $102.89 a barrel from $102.15 one week earlier. On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for October stood at $95.40 per barrel compared with $93.11.
"Russia and Ukraine combined account for a fifth of worldwide wheat exports, so any disruption to the supply of wheat from this region would noticeably increase the demand for wheat from the US and the EU." By Friday on the Chicago Board of Trade (CBOT), November-dated soybean fell to $10.24 per bushel from $10.42 a week earlier. Maize for delivery in December slid to $3.67 a bushel from $3.71. Wheat for December rose to $5.73 per bushel from $5.62.
By Friday on the London Bullion Market, the price of gold rose to $1,285.75 per ounce from $1,277.25 a week earlier. Silver eased to $19.47 an ounce from $19.49. On the London Platinum and Palladium Market, platinum gained to $1,424 per ounce from $1,416. Palladium climbed to $898 an ounce from $883.
-- Three-month aluminium climbed to $2,101 per tonne from $2,064.
-- Three-month lead dipped to $2,245 a tonne from $2,254.
-- Three-month tin dropped to $21,877 a tonne from $22,225.
-- Three-month nickel decreased to $18,565 per tonne from $18,832.
-- Three-month zinc fell to $2,349 a tonne from $2,359.75.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in October fell to $427.50 from $432.60 a week earlier. On ICE Futures US, the price of unrefined sugar for October inched down to 15.64 US cents a pound from 15.97 US cents a week earlier.