LONDON, Sept 6: Crude oil prices plunged this week as Hurricane Gustav spared US energy facilities in the Gulf of Mexico, traders said.

Commodities futures, notably oil and metals, were also pushed lower by a strong dollar and concerns about falling demand for raw materials amid a global economic slowdown, they added.

OIL: Oil prices tumbled by about 10 per cent in value to five-month lows close to $104 early in the week as it appeared that Gustav had spared damage to US refineries and platforms.

They soon recovered to just under $110 but resumed their fall as the US government decided to release crude stocks from its strategic reserve after Gustav had nevertheless halted energy production in the Gulf of Mexico.

Oil prices again fell below $105 Friday on concerns over slowing energy demand and a strong US currency, while the market awaited next week’s Opec meeting on crude output levels.

The outlook for global economies is looking far from rosy, and is fuelling concerns over demand destruction and pushing oil prices lower, said Nimit Khamar, an analyst at the Sucden brokerage in London.

Opec is set to meet on 9th September (Tuesday), with many market participants expecting them to reduce production to prevent over-supply,Khamar added.

The dollar struck a near 11-month high versus the euro Friday on news of slumping industrial output in Germany, Europe’s biggest economy, and as the market awaited key US jobs data, traders said.

The euro fell to $1.4196 in midday London trade -- the lowest level since October 24, 2007. It later recovered to above $1.42 after poorly-received US jobs figures.

A strong US currency makes dollar-priced commodities more expensive for buyers holding weaker currencies, dampening demand for the raw materials, which is already falling because of a global economic slowdown.

As well as pushing the euro lower, the dollar also struck 2.5-year highs versus sterling this week as the market anticipated recession in Britain as well as across the eurozone.

The Organization of the Petroleum Exporting Countries (Opec) meets next week in Vienna, home to the cartel’s headquarters, amid speculation that the group which produces 40 percent of the world’s oil may decide to cut output as prices slide toward $100.

Crude oil, which hit a record high $147.27 on July 11 in New York, has lost nearly 40 dollars in less than two months.

Oil prices had broken through $100 a barrel for the first time at the start of January on geo-political concerns, notably surrounding the ongoing nuclear dispute between the West and Iran, which is a major producer and exporter of crude oil.

By Friday, New York’s main oil futures contract, light sweet crude for delivery in October, was trading at 106.93 dollars a barrel, down from $117.41 a week earlier.

Brent North Sea crude for October slumped to $105.33 a barrel from $115.65 .

PRECIOUS METALS: Gold slid below $800 an ounce before rebounding back above the psychological level as the dollar took a knock from weak US jobs figures on Friday.

The dollar retaining its recent strength is likely to keep gold prices under pressure although the sharp pick up in physical interest, particularly ahead of the wedding season in India and key festivals, should provide some support to prices in the near term, said analysts at Barclays Capital.

Silver, platinum and palladium futures all fell in gold’s wake. On the London Bullion Market, gold dropped to $808.50 per ounce at Friday’s late fixing from $833 a week earlier.

Silver decreased to $12.72 per ounce from $13.78.

On the London Platinum and Palladium Market, platinum retreated to $1,387 per ounce at the late fixing on Friday from $1,479.

Palladium slipped to $277 per ounce from $302.

BASE METALS: Base metals prices dropped on concerns over weakening demand amid a slowdown to the global economy. They also fell because of strong supplies and as investors prepared to invest in a resurgent dollar.

Copper futures tumbled below $7,000 a ton on Friday for the first time since February.The entire complex has weakened sharply as sentiment remains weighed by macroeconomic concerns, said Barclays Capital analysts.

Copper prices have fallen sharply ... weighed by a hefty increase in stocks, they added.

By Friday, copper for delivery in three months slumped to $6,889 per tonne on the London Metal Exchange from $7,509 a week earlier.

Three-month aluminium slid to $2,595 per ton from $2,714.

Three-month lead dropped to $1,936 per tonne from $1,975.

Three-month zinc fell to $1,780 per tonne from $1,812.

Three-month tin slipped to $19,425 per ton from $20,000.

Three-month nickel declined to $18,600 per ton from $20,226.

COFFEE: Coffee prices fell on news of excess supplies.

Exports of coffee from Sumatra, the main growing region in Indonesia, have more than doubled in the first seven months of the calendar year due to a bumper crop and high carry-over stocks, according to data from the island’s trade office, noted the Public Ledger.

By Friday on LIFFE, London’s futures exchange, Robusta for November delivery dropped to $2,212 per tonne from $2,331 a week earlier.

On the New York Board of Trade (NYBOT), Arabica for December delivery declined to 147 US cents per pound from 148.75 cents.

COCOA: Cocoa prices slid.

Dollar strength continued to weigh on values, said Ryan Bennett, an analyst at the Sucden brokerage.

By Friday on LIFFE, the price of cocoa for December decreased to 1,544 pounds per tonne from 1,650 pounds a week earlier.

On the NYBOT, the December cocoa contract declined to $2,645 per tonne from $2,937.

SUGAR: Sugar prices headed south as oil prices slid.

Sugar is used in the production of ethanol, a cheaper alternative to motor fuel which is refined from crude oil.

By Friday on LIFFE, the price per ton of white sugar for October delivery retreated to 388.60 pounds from 408 pounds the previous week.

On NYBOT, the price of unrefined sugar for October delivery slipped to 12.77 US cents per pound from 13.23 cents.

GRAINS AND SOYA: Grains and soya prices dropped as rain fell in the United States, boosting crop growth, dealers said.

By Friday on the Chicago Board of Trade, maize for December delivery was down to $5.49 per bushel from $5.85 the previous week.

November-dated soyabean meal -- used in animal feed dropped to $11.90 from $13.24.

Wheat for December delivery fell to $7.48 per bushel from $8.01.

RUBBER: Malaysian rubber prices fell, while dealers said that lower oil prices would result in cheaper synthetic rubber, which is made using crude.

On Friday, the Malaysian Rubber Board’s benchmark SMR20 slid to 277.60 US cents per kilo from 288.10 US cents per kilo a week ago.—AFP