LONDON, Nov 8: Commodity prices saw mixed fortunes this week, with crude oil falling in value and metals switching between losses and gains on world markets as recession fears intensified.

The US unemployment rate rose to its highest level since 1994 in October as it touched 6.5 per cent, official data showed Friday, while analysts forecast it to increase further in Barack Obama’s first year as president.

Meanwhile the economy of the 15 nations sharing the euro will “very probably” be in recession next year, the chairman of the eurozone finance ministers, Jean-Claude Juncker, said on Friday.

On Thursday the Bank of England slashed British borrowing costs by a massive 1.5 per centage points to 3.0 per cent, a sign that Britain was set for a deep recession of its own, according to economists.

OIL: Oil prices slumped to 21-month low points below $60 a barrel on prospects of sliding energy demand because of a global economic slowdown, traders said.

Demand is starting to wane quite considerably, Robert Montesfusco at Sucden brokers told AFP. We are not seeing any good demand, he added.

Fears of the sharp global downturn have intensified after the International Monetary Fund on Thursday warned that advanced economies would contract in 2009 for the first time since World War II.

The IMF said advanced economies would now shrink by 0.3 per cent in 2009.

The organisation had previously predicted 0.5 per cent growth.

Oil prices have plunged in recent months as a global economic slowdown dampens demand for energy worldwide, coming off record highs above $147 in July when fears of supply disruptions had sent them rocketing.

The International Energy Agency said Thursday that it expected the price of oil to rebound above $100 a barrel and eventually reach $200 by 2030.

In a report on the global energy outlook, the agency said it predicted the price to average $100 from 2008 to 2015.

It also predicted that in 2030 the price would stand at just above $200, which after adjustment for projected inflation, was equivalent to more than $120 in real dollar values.

The agency said the figures represented a major adjustment from its forecasts last year after a review of the outlook for production costs and demand.

A decline in oil prices meanwhile gained momentum on Wednesday after US figures showed US gasoline (petrol) stockpiles had jumped 1.1 million barrels last week, confounding market expectations for a drop of 600,000 barrels.

Crude reserves held steady, instead of rising the 1.2 million barrels forecast by analysts.

US energy demand continued to decline as Americans consumed 6.7 per cent less crude in the past four weeks compared with the same period a year ago, the government data showed.

In a volatile week’s trading, oil prices soared six dollars on Tuesday to above $70 in New York as the US currency weakened against the euro and on evidence that OPEC crude exporters were cutting production as promised, analysts said.

A weaker dollar makes oil priced in the US unit cheaper for buyers holding stronger currencies, pushing up demand.

The Organization of the Petroleum Exporting Countries, which pumps about 40 per cent of the world’s oil, said it would cut output by 1.5 million barrels per day from November 1 to counter falling prices.

By Friday On the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in December fell to $62.96 a barrel from $64.50 a week earlier.

On London’s Inter Continental Exchange (ICE), Brent North Sea crude for December slipped to $58.80 a barrel from $62.07 .

PRECIOUS METALS: Gold led precious metals higher as it benefited from dollar weakness.

A weak US currency stimulates demand for dollar-priced commodities because they become cheaper for investors holding stronger currencies.

On the London Bullion Market, gold rose to $735.25 an ounce at Friday’s late fixing from $730.75 a week earlier.

Silver gained to $10.41 an ounce from $9.28 .

On the London Platinum and Palladium Market, platinum advanced to $849 an ounce at the late fixing on Friday from $814 a week earlier.

Palladium increased to $227 an ounce from $198 .

BASE METALS: Most base metals prices declined.

Volatility will remain a feature in the coming months as the market remains nervous, said BaseMetals.com analyst William Adams.

By Friday, copper for delivery in three months fell to $3,785 per ton on the London Metal Exchange from $3,890 a week earlier.

Three-month aluminium dropped to $1,990 per ton from $2,008.

Three-month lead slid to $1,400 per ton from $1,431 .

Three-month zinc slipped to $1,109 per ton from $1,130 .

Three-month tin rose to $14,812 per ton from $14,650 .

Three-month nickel decreased to $11,200 per ton from $11,249.

COCOA: Cocoa futures headed lower once more after a rally the week before.

Economic concerns came into play, said Sucden analyst Ralph Hawes.

It seems likely that the downtrend is going to re-assert itself and certainly the market appears to have no real appetite for a sustained rally. By Friday on LIFFE, London’s futures exchange, the price of cocoa for delivery in March fell to 1,270 pounds per ton from 1,331 pounds a week earlier.

COFFEE: Coffee prices rose in London and fell in New York.

By Friday on LIFFE, Robusta for delivery in January gained to $1,739 per ton from $1,616 a week earlier.

SUGAR: Sugar prices extended gains.

By Friday on LIFFE, the price per ton of white sugar for delivery in December rose to 339.80 pounds from 337.80 pounds the previous week.

On NYBOT, the price of unrefined sugar for March increased to 12.21 US cents per pound from 11.88 cents.

GRAINS AND SOYA: Grains and soya prices dropped.

We are near a bottom for prices said Allendale analyst Joe Victor.

By Friday on the Chicago Board of Trade, maize for delivery in December slid to $3.84 per bushel from $4.02 the previous week.

January-dated soyabean meal -- used in animal feed -- retreated to $9.18 from $9.33 .

Wheat for December fell to $5.24 per bushel from $5.36 .

RUBBER: Malaysian rubber prices built on gains won the previous week after the world’s top producers -- Thailand, Malaysia and Indonesia -- plan production cuts to help boost falling prices.

On Friday, the Malaysian Rubber Board’s benchmark SMR20 rose to 178.20 US cents per kilo from 175.25 US cents per kilo a week earlier.—AFP