Oil prices sank heavily this week as traders tracked the US dollar and Greek debt concerns, and shrugged off a widely-expected decision from the 12-nation OPEC cartel to maintain crude output levels.
Many other commodities were also dragged lower by stubborn concerns about Greece, and the stronger greenback, which makes dollar-priced raw materials more expensive for buyers using weaker currencies, and therefore hits demand.
“Oil prices were getting their cue from the broader market as persistent concerns over Greece ... with the commodity complex suffering as well,” VTB Capital’s Andrey Kryuchenkov said. “Otherwise, little changed in the world of oil with market participants still digesting the bullish weekly report on US fuel inventories report and OPEC’s decision to keep production levels unchanged on Wednesday.”
OIL: World oil prices took a tumble as a strong US currency dented investor enthusiasm for dollar-priced crude, analysts said.
“It’s the euro sliding against the dollar ... everything is tumbling, so hence we are down in line with the broader market,” Kryuchenkov said.
OPEC meanwhile left its output ceiling at 24.84 million barrels a day at a meeting in Vienna on Wednesday, citing uncertainty in the macroeconomic environment and global oil demand.
The cartel, which pumps 40 percent of world oil, said it would review the economic situation at its next meeting on Oct. 14.
By late on Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in April plunged to US$80.29 from US$82.42 a week earlier.
On London’s IntercontinentalExchange, Brent North Sea crude for May delivery dived to US$79.66 from US$80.56 for the expired April contract a week earlier.
BASE METALS: Base or industrial metals mostly fell. By Friday on the London Metal Exchange, copper for delivery in three months dipped to US$7,419 a tonne from US$7,480 the previous week.
Three-month aluminum fell to US$2,252 a tonne from US$2,256.
PRECIOUS METALS: The prices of precious metals diverged in subdued trading. By Friday on the London Bullion Market, gold eased to US$1,105 an ounce from US$1,106.25 the previous week.
Silver was unchanged at US$17.31 an ounce.
On the London Platinum and Palladium Market, platinum edged down to US$1,617 an ounce from US$1,619. Palladium firmed to US$476 an ounce from US$464.
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
‘DANGEROUS GAME’: Legislative Yuan budget cuts have already become a point of discussion for Democrats and Republicans in Washington, Elbridge Colby said Taiwan’s fall to China “would be a disaster for American interests” and Taipei must raise defense spending to deter Beijing, US President Donald Trump’s pick to lead Pentagon policy, Elbridge Colby, said on Tuesday during his US Senate confirmation hearing. The nominee for US undersecretary of defense for policy told the Armed Services Committee that Washington needs to motivate Taiwan to avoid a conflict with China and that he is “profoundly disturbed” about its perceived reluctance to raise defense spending closer to 10 percent of GDP. Colby, a China hawk who also served in the Pentagon in Trump’s first team,
SEPARATE: The MAC rebutted Beijing’s claim that Taiwan is China’s province, asserting that UN Resolution 2758 neither mentions Taiwan nor grants the PRC authority over it The “status quo” of democratic Taiwan and autocratic China not belonging to each other has long been recognized by the international community, the Mainland Affairs Council (MAC) said yesterday in its rebuttal of Beijing’s claim that Taiwan can only be represented in the UN as “Taiwan, Province of China.” Chinese Minister of Foreign Affairs Wang Yi (王毅) yesterday at a news conference of the third session at the 14th National People’s Congress said that Taiwan can only be referred to as “Taiwan, Province of China” at the UN. Taiwan is an inseparable part of Chinese territory, which is not only history but
INVESTMENT WATCH: The US activity would not affect the firm’s investment in Taiwan, where 11 production lines would likely be completed this year, C.C. Wei said Investments by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in the US should not be a cause for concern, but rather seen as the moment that the company and Taiwan stepped into the global spotlight, President William Lai (賴清德) told a news conference at the Presidential Office in Taipei yesterday alongside TSMC chairman and chief executive officer C.C. Wei (魏哲家). Wei and US President Donald Trump in Washington on Monday announced plans to invest US$100 billion in the US to build three advanced foundries, two packaging plants, and a research and development center, after Trump threatened to slap tariffs on chips made
RSS