LONDON, Oct 18: World commodity prices tumbled this week, with oil striking a 17-month low point under $66 a barrel in London, as fears of a global recession weighed on demand for raw materials.

The fears about this global credit crisis leading to an extended economic slump, and perhaps a recession, really are causing investors to bail out, said Victor Shum from the Purvin and Gertz energy consultancy.

OIL: The price of crude oil on international markets plunged over the week despite a muted rally on Friday.

London’s Brent North Sea crude hit a 17-month low point at $65.45 per barrel on Thursday.New York’s main contract, light sweet crude, tumbled to settle at $69.85 on Thursday, the first time the benchmark contract had closed below the $70 level since August 2007.

After this week’s fresh price falls, Opec said Thursday that it would hold an extraordinary meeting next Friday -- instead of in November -- to discuss the global financial crisis and its impact on the oil market.

The news caused crude prices to jump slightly on Friday on speculation that the OPEC crude producers’ cartel could cut production soon in a bid to protect their revenues.

The 12-nation Organization of Petroleum Exporting Countries, which pumps about 40 per cent of global crude supplies, has not officially indicated whether production levels would be altered at the meeting.

The cartel’s special ministerial meeting on the impact of the financial crisis on oil prices will be held on October 24 instead of November 18.

Qatar’s energy minister predicted Friday that Opec would cut oil output by at least one million barrels a day at its emergency meeting next week after crude prices tumbled below $70.

Prices have more than halved in value since striking record high points above $147 per barrel in July, when supply worries sent prices soaring.

Opec members Iran and Libya have also called for lower oil output to shore up prices. The cartel’s current output quota is 28.8 million barrels per day.

On Wednesday, Opec cut its estimate for growth in demand for oil this year and in 2009 largely because of an “excessive” easing of demand in the United States.

For 2008, the cartel also slashed its estimate for growth in demand to 550,000 barrels per day, giving average total demand of about 86.5 million bpd.

Demand concerns were reinforced by data this week from the US government’s Department of Energy.

American crude reserves leapt by 5.6 million barrels in the week ended October 10, according to the DoE. Most analysts expected less than half that rise, at 2.2 million barrels.

Gasoline (petrol) stockpiles rose by 7.0 million barrels, far exceeding market expectations of a 2.8-million-barrel gain.

By Friday, New York’s main oil futures contract, light sweet crude for delivery in November, had tumbled to $71.34 per barrel from $79.96 a week earlier. Brent North Sea crude for December slumped to $69.15, compared with $76.56 last week for the November contract.

PRECIOUS METALS: Gold plummeted even though it is seen as a haven in times of economic turmoil. Its performance weighed on other precious metals, with silver, platinum and palladium striking multi-year low points.

Alongside the rest of the commodities complex, prices tumbled across the precious metals said analysts at Barclays Capital.

Despite safe-haven interest, gold prices did not manage to escape unscathed. On the London Bullion Market, gold dived to $784.50 an ounce at Friday’s late fixing from $900.50 a week earlier.

Silver retreated to $9.56 s an ounce from $11.74 .

On the London Platinum and Palladium Market, platinum slumped to $856 an ounce at the late fixing on Friday from $1,001 a week earlier.

Palladium dropped to $172 an ounce from $190 .

BASE METALS: Base metals struck multi-year lows as they fell sharply for a second week running.

Contagion from the financial sector to the real economy is occurring at full speed, said Merrill Lynch analyst Francisco Blanch.

With the likelihood of a global recession rising, industrial metals prices will face further downward pressure. As global industrial and construction activity slows even more, copper and aluminium demand could take a hit. By Friday, copper for delivery in three months had tumbled to $4,620 per ton on the London Metal Exchange from $4,824 a week earlier.

Three-month aluminium dropped to $2,185 per ton from $2,192.

Three-month lead slid to $1,415 per ton from $1,469.

Three-month zinc slumped to 1,189 per ton from $1,372 .

Three-month tin fell to $13,350 per ton from $13,600 .

Three-month nickel declined to $10,400 per ton from $11,101.

COCOA: Cocoa prices fell sharply.

Prices tumbled across the agricultural complex on heightened fears a recession could severely affect demand-side dynamics, said analysts at Barclays Capital.

By Friday on LIFFE, London’s futures exchange, the price of cocoa for December slumped to 1,275 pounds per ton from 1,368 pounds a week earlier.

On the NYBOT, the December cocoa contract retreated to $2,142 per ton from $2,249.

COFFEE: Coffee prices recovered in London on bargain-hunting after plunging earlier in the week.

By Friday on LIFFE, Robusta for January delivery rose to $1,779 per ton from $1,748 a week earlier.

On the New York Board of Trade (NYBOT), Arabica for December delivery fell to 114.05 US cents per pound from 114.10 cents.

SUGAR: Sugar prices lost ground as oil prices plunged.

Lower energy prices have weakened prospects for biofuel-related price support, said analysts at Goldman Sachs.

Sugar is used in the production of ethanol, a cheaper alternative to motor fuel which is refined from crude oil. When crude futures fall, demand for ethanol wanes.

By Friday on LIFFE, the price per ton of white sugar for December delivery slipped to 323.20 pounds from 324.90 pounds the previous week.

On NYBOT, the price of unrefined sugar for March delivery lowered to 11.32 US cents per pound from 11.40 cents.

GRAINS AND SOYA: Grains and soya prices retreated.

Forecasts for drier weather in the US Midwest... also weighed on the market, as it should aid the progress of the ongoing harvest for maize and soyabeans, said analysts at Barclays Capital.

By Friday on the Chicago Board of Trade, maize for December delivery was down at $3.93 per bushel from $4.08 the previous week.

November-dated soyabean meal -- used in animal feed -- fell to $8.92 from $9.10.

Wheat for December delivery reclined to $5.57 per bushel from $5.64.—AFP