LONDON, Jan 24: Oil prices were mixed and base metals dropped this week but cocoa futures struck a 23-year peak as US President Barack Obama began work on saving the ailing US economy.

The global economic crisis claimed more victims on Friday as Britain officially entered recession and job losses and bankruptcies continued to mount across Europe, Japan and the United States.

Obama, inaugurated Tuesday, meanwhile warned the economic crisis may be unprecedented and must be dealt with rapidly as he nudged Congress to meet a mid-February deadline to pass a huge stimulus package.

OIL: Oil prices were mixed by the finish on Friday as the market proved volatile amid growing concerns about the worsening economic slowdown which is dampening demand.

Prices did find some support, however, despite the United States — the biggest crude consuming nation — announcing a sharp increase in its energy stockpiles.

The US Department of Energy said crude inventories jumped 6.1 million barrels last week, far more than analyst expectations for an increase of around two million barrels.

Volatile swings are likely to continue, with the (oil) market also tracking equities and the dollar, said VTB Capital analyst Andrey Kryuchenkov.

Oil prices have plummeted from record highs above $147 in July because of a worsening global economic slowdown that has dented demand.

Hopes of a pick-up in demand were not helped Thursday as it was revealed that unemployment claims had hit a 26-year high and housing construction fallen to half-century lows in the United States, the world’s biggest energy consumer.

Britain is meanwhile in recession for the first time since 1991, official data showed Friday, triggering a plea from Prime Minister Gordon Brown for renewed international help to tackle the financial crisis.

Oil prices had jumped higher Wednesday on hopes that President Obama would help pull America out of recession.

The market also won brief support from evidence of Opec production cuts.

Opec, whose member nations together pump about 40 percent of world crude, would consider further cuts to oil production if prices continued to fall, Algerian Energy Minister Chakib Khelil had said last week.

By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in March stood at $42.38 , down on the day but well above the $35.29 at which the now-expired February contract finished a week earlier.

On London’s InterContinental Exchange (ICE), Brent North Sea crude for delivery in March dropped to $44.60 a barrel from $47.50 a week earlier.

PRECIOUS METALS: Gold and silver prices rallied, while platinum and palladium — used to make catalytic converters — declined as car sales continue to weaken sharply due to the economic slowdown.

Gold has continued to attract safehaven buying amid the financial market turmoil and bleak macroeconomic outlook, said analysts at Barclays

Capital.

On the London Bullion Market on Friday, gold jumped to $875.75 an ounce at the late fixing from $833.75 a week earlier.

Silver climbed to $11.34 an ounce from $10.78 .

On the London Platinum and Palladium Market, platinum slipped to $928 an ounce at the late fixing on Friday from $943.

Palladium eased to $184 an ounce from $185 .

BASE METALS: Base metals prices mostly declined.

Substantial LME (London Metal Exchange) inventory increases dominated sentiment across most of the complex this week, with aluminium stocks reaching a record high, said Deutsche Bank analyst Adam Sieminski.

Prices were also hit by news that China’s economy grew by only 9.0 per cent in 2008, slipping back into single digits for the first time in six years as the economic crisis takes its toll.

In recent years China has been a huge importer of raw materials.

By Friday, copper for delivery in three months fell to $3,109 a ton on the London Metal Exchange from $3,397 the previous week.

Three-month aluminium dropped to $1,326 a ton from $1,487.

Three-month lead slid to $1,071 a ton from $1,174 .

Three-month zinc rose to $1,289 a ton from $1,265.

Three-month tin declined to $11,025 a ton from $11,199 .

Three-month nickel increased to $11,201 a ton from $10,913 .

COCOA: The price of cocoa struck 2,013 pounds a ton — the highest level since 1985.

Concerns over the level of the Ivory Coast cocoa crop continued to provide strong support for prices, said analysts at brokers Czarnikow.

By Friday on LIFFE, London’s futures exchange, the price of cocoa for delivery in March soared to 2,013 pounds a ton from 1,762 pounds a week earlier.

On the New York Board of Trade (NYBOT), the March cocoa contract jumped to $2,624 a ton from $2,463 .

COFFEE: Coffee prices were mixed.

By Friday on LIFFE, Robusta for delivery in March fell to $1,713 a ton from $1,965 on the now expired January contract a week earlier.

On the NYBOT, Arabica for March rose to 119 US cents a pound from 116.35 US cents.

GRAINS AND SOYA: Maize and soya prices recovered but wheat futures fell.

There is still good demand for US soybeans in China, said Allendale analyst Joe Victor.

By Friday on the Chicago Board of Trade, maize for delivery in March rose to $3.94 a bushel from $3.91 the previous week.

March-dated soyabean meal — used in animal feed — was up to $10.27 from $10.20 .

Wheat for March dropped to $5.70 a bushel from $5.78 .

SUGAR: Sugar prices extended gains.

By Friday on LIFFE, the price of a ton of white sugar for delivery in March climbed to 353 pounds from 344.50 pounds a week earlier.

On NYBOT, the price of unrefined sugar for March advanced to 12.61 US cents per pound from 12.34 cents.

RUBBER: Malaysian rubber prices dropped on sliding demand and despite plans to reduce exports.

Malaysian rubber exports are expected to be cut by 57,000 tons this year as part of efforts to stabilise prices, according to Plantation Industries and Commodities Minister Peter Chin Fah Kui.

Malaysian rubber exports last year amounted to 1.1 million tons.

On Friday, the Malaysian Rubber Board’s benchmark SMR20 dropped to 140.75 US cents a kilo from 145.60 US cents a kilo a week ago.—AFP