LONDON, July 12: Oil prices zoomed to a record $147.50 this week and aluminium hit all time highs as many commodities were boosted by supply worries, growing tensions over Iran and the weak US currency.

Commodity prices swung higher ... as increased tensions between Iran and the West triggered fresh safe-haven demand for oil and metals, said James Moore, analyst at TheBullionDesk.com.

Dollar weakness also provided upside momentum he said. The struggling dollar boosts demand for dollar-priced raw materials which become cheaper for buyers using stronger currencies.

OIL: Oil prices rocketed above $147 on Friday as traders seized on tensions over Iran and Nigeria at the end of a very volatile trading week.

London’s Brent North Sea oil jumped to as high as $147.50 per barrel to beat the previous record of $146.69 set on July 3.

New York crude also topped $147 for the first time to reach a historic $147.27.

Prices soared to record highs on mounting geopolitical tensions in Nigeria and Iran, while supply threats in Brazil add to supply woes, said Barclays Capital analysts.

Workers for Brazil’s state-run oil giant Petrobras were set to start a five-day strike on Monday.

The main union covering Petrobras workers in the key Campos off-shore area in southeastern Brazil confirmed to AFP Friday that the near-total stoppage would occur.

Prices also swept back into record territory on Friday after the European single currency briefly leapt above $1.59.

As ever, the market remains very sensitive to any potential supply disruptions and geopolitical tensions, said Sucden analyst Andrey Kryuchenkov.

Oil rallied by almost six dollars on Thursday on the back of simmering geopolitical tensions over key producer Iran and worries over stretched global crude supplies, traders said.

Prices had dived below $140 on Monday as a result of a then strengthening US currency, underlining the extreme volatility that the market is currently experiencing. On Friday, traders continued to track Iran, which is Opec’s second-biggest crude oil producer with output of about 4.0 million barrels per day.

The White House played down the risk of war between Iran and the United States, despite Iranian missile tests and some tough talk by US Secretary of State Condoleezza Rice.

Rice warned Iran that Washington had beefed up its security presence in the Gulf and would not hesitate to defend its ally Israel.

Iran insists its nuclear drive is aimed solely at generating energy but some Western nations fear it could be aimed at making an atomic bomb and have called for a freeze of uranium enrichment.

Opec would not be able to replace Iran’s oil production if supplies were halted in case of a war with Israel or the United States, the oil cartel’s chief has said.

At the same time, the oil producers’ cartel has cut its estimate for world crude demand over the next two decades, predicting that high prices would compel consumer countries to be more efficient in their use of energy.

The International Energy Agency has meanwhile forecast that tension on oil markets was set to ease early next year amid an economic slowdown in the United States.

Elsewhere, in crude producer Nigeria, kidnappers seized at least one foreigner working for a German company in the restive Niger Delta oil region, a police source said on Friday.

Violence in the southern delta region has already reduced Nigeria’s total oil production by a quarter since January 2006.

By the Friday close, Brent North Sea crude for August had eased back to $144.15, leaving it down slightly from $144.86 a week earlier. New York’s main oil futures contract, light sweet crude for August rose to $146.55 from $144.10.

PRECIOUS METALS: Gold rallied on the back of growing inflationary pressures, record high oil prices and turmoil on global equity markets.

Further weakness in the dollar, heightening inflationary concerns on the back of buoyant oil prices as well as safe-haven buying boosted by concerns over the broader economy and geopolitical tensions saw (gold) prices regain upward momentum, said Barclays Capital analysts.

On the London Bullion Market, gold advanced to $962.75 per ounce at Friday’s late fixing from $931.25 a week earlier.

Silver rose to $18.38 per ounce from $18.01.

On the London Platinum and Palladium Market, platinum firmed to $2,030 per ounce at the late fixing on Friday from $2,012 a week earlier.

Palladium eased to$ 454 per ounce from $456 .

BASE METALS: Star performer aluminum hit a record while copper beat a retreat from its all-time high hit the previous week.

Aluminium hit a historic 3,380 dollars per ton on Thursday after Chinese moves to cut production, analysts said. That eclipsed the old record of $3,255 that was set on March 6.

Aluminium has hit a record high ... following an announcement that China’s top 20 aluminium smelters are to cut production by 5-10 per cent from this month,” Barclays Capital analysts said.

Tight power supplies and high energy prices ... constrain output growth across the globe and particularly in China. They said this was the catalyst for a tighter market and much higher prices. By Friday, copper for delivery in three months fell to $8,365 per ton on the London Metal Exchange from $8,640 a week earlier.

Three-month aluminium jumped to 3,380 dollars per ton from $3,100.

Three-month lead rose to 2,025 dollars per ton from $1,555. Three-month zinc gained to 2,050 dollars per ton from $1,757 .

Three-month tin climbed to 23,201 dollars per ton from $22,475.

Three-month nickel advanced to $21,900 per ton from $20,275.

COCOA: Cocoa prices were lower on profit-taking after reaching multi-year highs the previous week on concerns over tight supplies in exporter Ivory Coast.

By Friday on LIFFE, London’s futures exchange, the price of cocoa for September delivery had dropped to 1,550 pounds per ton from 1,609 pounds a week earlier.

On the New York Board of Trade (NYBOT), the September cocoa contract fell to 2,926 dollars per ton from$ 3,136.

COFFEE: Coffee prices weakened on the prospect of abundant supplies in key producer Brazil, traders said.

By Friday on LIFFE, Robusta for September delivery fell to$ 2,361 per ton from $2,480 a week earlier.

On the NYBOT, Arabica for September delivery slid to 142.62 US cents per pound from 151.90 cents.

SUGAR: Sugar prices drifted lower in quiet trading conditions.

By Friday on LIFFE, the price per ton of white sugar for October delivery dipped to 390.50 pounds from 393 pounds the previous week.

On NYBOT, the price of unrefined sugar for October delivery declined to 13.80 US cents per pound from 13.91 cents.

RUBBER: Malaysian rubber prices eased this week despite keen Chinese demand.

There is demand for rubber, especially from China, said one dealer.

On Friday, the Malaysian Rubber Board’s benchmark SMR20 slid to 322.40 US cents per kilogramme (2.2 pounds) from 324.80 a week ago.—AFP