LONDON, Jan 31: Commodity markets faced a mixed week as traders tracked a deepening recession in key consumer the United States and a gloomy global economic outlook from the International Monetary Fund.

Government data showed Friday that the US economy contracted in the fourth quarter of 2008 at the fastest pace since 1982, with a 3.8 per cent rate of decline.

However, the figure was not as bad as the 5.5 per cent drop forecast by analysts.But US President Barack Obama warned that the grim data showing a deepening recession was a “continuing disaster” for American workers and meant Congress must not drag its feet on his stimulus plan.

Meanwhile this week, the IMF slashed its world economic growth forecasts, predicting the severe financial crisis would brake global growth to the slowest pace in six decades.

OIL: Oil prices rose in London but eased in New York, with nervous traders on edge about the health of the world economy.

Crude oil markets may remain vulnerable to further disappointments in the economic conditions, warned Brenda Sullivan, analyst at Sucden Financial in London.

Opec meanwhile said it would consider more output cuts to bolster a market faced with tumbling demand due to the worldwide economic slump.

Cartel members need an oil price above 50 dollars to make exports worthwhile, the head of the cartel said Thursday, adding that more production cuts were possible later this year.

The Organization of Petroleum Exporting Countries pumps 40 percent of the world’s oil and late last year cut output by a total 4.2 million barrels per days as prices slumped from record highs of 147 dollars reached in July.

One factor that has supported oil pricing is the production cuts made by Opec, said Victor Shum, an analyst with energy consultancy Purvin and Gertz.

So despite all the bad economic news that continues to inundate the market, oil pricing has stabilised. After sliding at the start of the week, oil prices rebounded on Wednesday as traders shrugged off surging US crude oil inventories and a gloomy IMF global outlook.The US government’s Energy Information Administration said crude reserves jumped 6.2 million barrels in the week to January 23, which was more than double market expectations and indicated weaker demand.

As the bulk of the increase in crude reserves -- four million barrels -- was reported in the US Gulf Coast, some experts felt there could be some easing of supplies, pushing prices higher.

By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in March dipped to $41.74 a barrel from $42.38 a week earlier.

On London’s InterContinental Exchange (ICE), Brent North Sea crude for March gained to $46 a barrel from $44.60 a week earlier.

PRECIOUS METALS: Gold prices rallied above 900 dollars an ounce as many investors sought safety for their cash, dragging other precious metals higher.

Prices extend their gains as safe-haven buying bolsters gold, said analysts at Barclays Capital.

Gold jumped as high as $927.36 per ounce on Friday, reaching a level last seen on October 10, 2008.

On the London Bullion Market on Friday, gold rose to $919.50 an ounce at the late fixing from $875.75 a week earlier.

Silver climbed to $12.51 an ounce from $11.34 .

On the London Platinum and Palladium Market, platinum jumped to $953 an ounce at the late fixing on Friday from$ 928 .

Palladium increased to $191 an ounce from $184 .

BASE METALS: Base metals prices saw mixed fortunes, with many held back by global economic gloom, weak demand and high inventories. The market is currently engulfed in bearish sentiment, manifested on a daily basis in economic data that underscore the severity of the current economic malaise, said Barclays Capital analysts.

Further, with consumption in many key markets now in decline, the build in LME (London Metal Exchange) stocks has been relentless. By Friday, copper for delivery in three months rose to 3,245 dollars a tonne on the London Metal Exchange from 3,109 dollars the previous week. Three-month aluminium edged up to $1,345 a ton from $1,326.

Three-month lead gained to $1,151 a ton from $1,071 .

Three-month zinc slid to $1,104 a ton from $1,289 .

Three-month tin declined to$10,875 a ton from $11,025 .

Three-month nickel decreased to $10,801 a ton from $11,201 .

COCOA: The price of cocoa hit 2,045 pounds a tonne in London -- which marked the highest level since 1985 -- on tense supply concerns in key producer Ivory Coast, dealers said.

Reports continue to filter out of the Ivory Coast as to the poor state of this years crop, said Sucden Financial analyst Stephanie Garner.

However, London cocoa prices ended the week in negative territory as traders cashed in their profits.

By Friday on LIFFE, London’s futures exchange, the price of cocoa for delivery in March dipped to 1,995 pounds a tonne from 2,013 pounds a week earlier.

On the New York Board of Trade (NYBOT), the March cocoa contract jumped to $2,780 ton from $2,624 .

COFFEE: Coffee prices drifted lower in muted trading.

By Friday on LIFFE, Robusta for delivery in March fell to $1,681 a ton from $1,713 a week earlier.

On the NYBOT, Arabica for March eased to 118.80 US cents a pound from 119 US cents.

GRAINS AND SOYA: Maize and soya prices slipped as traders kept a keen eye on prevailing weather conditions in key producer nations.

Grain fell on forecasts for rain in Argentina, where weather continues to drive near-term price direction, said Barclays Capital analysts. By Friday on the Chicago Board of Trade, maize for delivery in March dipped to $3.81 a bushel from $3.90 the previous week.

March-dated soyabean meal -- used in animal feed -- was down to $9.72 from $10.09 .

Wheat for March eased to $5.80 a bushel from $5.82 .

SUGAR: Sugar prices gained ground.

By Friday on LIFFE, the price of a ton of white sugar for delivery in March climbed to 374 pounds from 353 pounds a week earlier.

On NYBOT, the price of unrefined sugar for March advanced to 12.76 US cents per pound from 12.61 cents.

RUBBER: Malaysian rubber prices dropped on weak demand, as producers were expected to suffer in the face of the global economic slowdown, dealers said. The government said Thursday it will impose a floor price for rubber if the commodity falls below the cost of production.

Plantation Industries and Commodities Deputy Minister A. Kohilan Pillay told state news agency Bernama the government would intervene if the price of Standard Malaysian Rubber (SMR) 20 fell between 2 ringgit (56 US cents) to 2.50 ringgit a kilo.

The price of SMR 20 is currently at 5.07 ringgit a kilo and there is no need to set a floor price for rubber, at the moment, he was quoted as saying.

On Friday, the Malaysian Rubber Board’s benchmark SMR20 dropped to 139.20 US cents a kilo from 140.75 U S cents a kilo a week ago.---AFP