Oil prices diverged this week as traders reacted to demand forecasts and the performance of the US dollar, while metals futures hit multi-month highs.
OIL: Crude oil began this week on a downbeat note, sinking under pressure from mediocre demand in the US, and falling further after the IEA warned about risks of high oil costs.
The IEA on Tuesday revised up its forecast for global oil demand this year by 30,000 barrels per day owing to unexpectedly strong economic activity in the US, Asia and the Middle East.
However, the IEA also warned in its latest monthly report that oil prices above US$80 a barrel could hamper economic recovery.
“While ongoing price subsidies may shield non-OECD consumers from the reality of any potential renewed surge in prices, this, plus tighter credit than two years ago, could stall OECD economic recovery or render it more ‘oil-less’ than we currently envisage,” the IEA said. “Ultimately, things might turn messy for producers if [oil at] 80-100 dollars a barrel is merely seen as the new 60-80 dollars a barrel, stunting economic recovery while prompting resurgent non-oil and non-OPEC supply investment.”
By late on Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in May slid to US$84.08 from US$85.45 a week earlier.
On London’s IntercontinentalExchange, Brent North Sea crude for June delivery stood at US$86.53 compared with US$85.23 for the May-expired contract a week earlier.
PRECIOUS METALS: Precious metals prices hit multi-month highs as the US dollar weakened.
Gold reached US$1,170 a barrel on Monday — the highest level since the start of December.
The price of gold is set to win further support as investors shun struggling currencies, notably the dollar, metals consultancy GFMS predicted on Wednesday.
“Looking ahead, further price gains were thought likely as the investment case was still perceived as strong, with for example all the major currencies now being questioned by investors,” London-based GFMS said in its latest annual survey on gold.
By late on Friday on the London Bullion Market, gold eased to US$1,151.50 an ounce from US$1,152.50 the previous week.
Silver grew to US$18.34 an ounce from US$17.69.
On the London Platinum and Palladium Market, platinum fell to US$1,708 an ounce from US$1,717.
Palladium jumped to US$532 an ounce from US$511.
SEASONAL MORATORIUM: The boat was boarded and seized by the China Coast Guard east-northeast of Liaoluo Bay outside restricted waters on July 2 Four crew members of a Taiwanese fishing vessel detained by Chinese authorities since July 2 are expected to be released today, but the return dates of the captain and the boat remain uncertain, a former official said. The Fujian Provincial People’s Government’s Taiwan Affairs Office (TAO) is likely to first release the crew members today, including a Taiwanese surnamed Ting (丁) and three Indonesians, former Penghu County Council deputy speaker Chen Shuang-chuan (陳雙全) said yesterday. They are to take a boat to the median line of the Taiwan Strait, where they would be picked up by the Da Jin Man No. 96
China appears to be using a new type of BZK-005 drone that might be capable of disrupting the radio communications in the Taiwanese military and causing the radar system to malfunction, a military source said yesterday. The military is closely monitoring traces of this upgraded drone after the Japanese Ministry of Defense recently captured images of a BZK-005 drone, which had a large number of antennas under the nose of the aircraft and a pod of unknown purpose attached under the belly of the craft. Defense experts in other countries had warned that the Chinese People’s Liberation Army (PLA) has bolstered
CHAMPION: Lin Yu-ting overcame adversity and intense international scrutiny on her path to Olympic victory. She said it means so much to win the gold for her country Taiwanese boxer Lin Yu-ting (林郁婷) emerged as Olympic champion in the women’s 57kg (featherweight) division on Saturday in Paris (Sunday in Taipei), despite facing online abuse due to gender misconceptions over the past two weeks. Lin defeated Julia Szeremeta of Poland by a unanimous 5-0 decision to clinch the gold, completing a long journey of redemption after being eliminated from the Tokyo Games in 2021 in her opening bout. Lin, who has been competing in women’s events since her boxing debut in September 2013, is the first Taiwanese boxer to win gold, after three other Taiwanese female boxers earned bronze medals in
MESSAGE TO THE WORLD: A letter by overseas Taiwanese organizations also called on the international community to ‘support democracy’ by opposing Chinese pressure Twenty-four overseas Taiwanese organizations in a joint letter urged the International Olympic Committee (IOC) to stop infringing on spectators’ freedom of speech and allow them to display Taiwan signage. The letter, addressed to IOC president Thomas Bach and members of the IOC executive board, was led by the Formosan Association for Public Affairs (FAPA), along with 23 other overseas Taiwanese organizations from the US, Japan, Europe, Argentina and Costa Rica. During the Olympic games, signs or items with the words “Taiwan” on them have been snatched away by Olympic security staff or Chinese spectators. Some spectators holding such signs have been forcibly