LONDON, June 7: World oil prices faced a rollercoaster week with a late surge to heights above $137 per barrel, as a falling US currency spurred demand, traders said.

OIL: New York’s light sweet crude for July surged Friday to a record $137.70 a barrel while London Brent North Sea oil touched $137.35 for the first time.

In stark contrast, prices had fallen to $121 on Wednesday as investors reacted to gains in the US currency and rising motor fuel inventories in the United States.

But the crude market zoomed higher on Thursday after European Central Bank president Jean-Claude Trichet suggested that interest rates could increase in the eurozone as early as July to tackle rising inflation. Trichet’s comments set the European single currency on an upwards trajectory against the dollar.

A weak dollar boosts demand for dollar-priced goods which become cheaper for foreign buyers, analysts said.

On Friday, the euro jumped above $1.57 as traders digested news that the US unemployment rate soared to 5.5 per cent in May.

In reaction, oil prices rallied, “extending gains from the day before on heavy losses in the dollar,” said Sucden analyst Andrey Kryuchenkov.

It seems that many investors used the latest sell-off in the dollar as an excuse to get back into the market after a bout of profit taking. Sky-high oil prices are meanwhile sparking widespread international concern and stoking inflationary pressures.

In Asia, a growing band of countries is cutting subsidies on fuel, including India, Indonesia and Malaysia.

PRECIOUS METALS: Most precious metals were boosted by the weak US currency and fears of rising inflation.

Metals like gold and silver are regarded as safe stores of value in times of higher inflation, traders said.

On the London Bullion Market, gold rose to $890.50 per ounce at Friday’s late fixing from $885.75 a week earlier.

Silver advanced to $17.19 per ounce from $16.85.

On the London Platinum and Palladium Market, platinum increased to 2,050 dollars per ounce at the late fixing on Friday from $2,008 a week earlier.

Palladium eased to $429 per ounce from $430.

BASE METALS: Base metals prices were mixed but remained under pressure from stretched global supplies. Losses were capped by the weak dollar.

By Friday, copper for delivery in three months fell to $7,815 per tonne on the London Metal Exchange from $7,925 a week earlier.

Three-month aluminium dropped to $2,899 per ton from $2,923.

Three-month nickel rose to$ 22,800 per ton from $22,187.

Three-month lead decreased to 1,935 dollars per ton from $,950.

Three-month zinc declined to $1,935 per ton from $1,991.

Three-month tin climbed to $21,800 per ton from $21,097.

COCOA: Cocoa prices rallied, hitting a 23-year peak of $1,530 per ton in London amid supply issues in Ivory Coast. The West African country is the world’s biggest cocoa producer.

The pace of (cocoa) bean deliveries has slowed down and attention is increasingly focusing on the coming 2008/09 October-March main crop, said Standard Chartered analyst Abah Ofon.

By Friday on LIFFE, London’s futures exchange, the price of cocoa for September delivery rallied to 1,529 pounds per tonne from 1,459 pounds a week earlier.

On the New York Board of Trade (NYBOT), the July cocoa contract jumped to $2,882 per ton from $2,721 .

COFFEE: Coffee prices were mixed amid fears about rainy weather which could limit output in Brazil, Vietnam and Colombia -- the world’s top three producers.

In Colombia, heavy rains could affect coffee output in the second half of the year if the winter weather stays intense and damages flowering crops, added Ofon at Standard Chartered.

By Friday on LIFFE, Robusta for July delivery eased to 2,244 dollars per ton from $2,269 a week earlier. On the NYBOT, Arabica for July delivery gained to 137 US cents per pound from 133.65 cents.

SUGAR: Sugar prices rebounded from falls the previous week.

By Friday on LIFFE, the price per tonne of white sugar for August delivery climbed to 336.20 pounds from 320 pounds the previous week.

On NYBOT, the price of unrefined sugar for July delivery rose to 10.02 US cents per pound from 9.82 cents.

GRAINS AND SOYA: Maize, or corn, hit a record high of $6.57 per bushel on Friday, beating the previous high of 6.43 that was set Thursday.

The key focus remains wet weather interrupting corn and soybean planting and ... the crude oil rally, said Allendale analyst Joe Victor.

Maize is used to produce ethanol, a cheaper alternative to gasoline or petrol.

By Friday on the Chicago Board of Trade, maize for July delivery soared to $6.57 per bushel from $5.99 the previous week.

July-dated soyabean meal — used in animal feed — rose to $14.83 from $13.63. Wheat for July delivery rallied to 8.12 dollars per bushel from $7.61.

RUBBER: Rubber prices dropped as traders took profits, despite tight global supplies.

The drop is due to profit-taking on the Tokyo Commodities Exchange as supplies here remain tight because of the heavy rains and unpredictable weather in Asian-producing countries, said an anonymous official at a rubber firm.

On Friday, the Malaysian Rubber Board’s benchmark SMR20 dropped to 303.90 US cents per kilo from 311.50 a week earlier.—AFP