LONDON, Oct 4: Commodity prices slumped across the board this week as markets were roiled by growing anxiety over whether an emergency US bailout of ailing banks will get through Congress.

Traders on Friday awaited a crucial vote by the US House of Representatives on a revised $700-billion (506-billion-euro) rescue package for the troubled financial system which they had rejected on Monday.

OIL: The price of oil nosedived on concerns that energy demand was shrinking because of a US-led global economic slowdown, traders said.

They argued that should the bailout plan pass it could boost the flagging United States economy -- the largest global energy consumer -- and draw a line under the current financial markets crisis.

Oil prices fell sharply ... as fears over the macroeconomic impact from the ongoing financial turmoil continue to dominate market sentiment, said Barclays Capital analyst Kevin Norrish.

The market was also dragged down on Wednesday by a surprise jump in crude inventories in the United States, which pointed towards weakening demand, traders said.

The US Department of Energy said crude stockpiles rose 4.3 million barrels in the week ending September 26, surprising traders who had expected a fall of around 1.7 million barrels.

US oil demand sank 7.1 per cent over the past four weeks compared with the same period a year ago, according to the DoE.

Oil also slumped by more than 4.50 dollars on Thursday despite the US Senate’s approval of the plan to buy up tainted mortgage-related assets.

The House of Representatives was to vote Friday on the plan. It had been revised after its rejection by the House on Monday -- a move that sent world markets into a tailspin.

Growth fears are likely to cap gains in oil prices ... until we start seeing a pick up in winter demand with some improving economic data from the developed world and concerns over the credit market recede, said Sucden analyst Andrey Kryuchenkov.

The market, hit by weakening global demand, has dropped sharply from record highs above $147 in July.

People are realising that the decline in demand is probably not just a US phenomenon, said David Johnson, an oil analyst with Macquarie Securities.

By Friday, New York’s main oil futures contract, light sweet crude for delivery in November, had tumbled to $94.33 per barrel from $105.61 a week earlier.

Brent North Sea crude for November slumped to $90.93 from $102.60.

PRECIOUS METALS: Gold prices led other precious metals downwards.

Selling was seen across the commodity spectrum ... as dollar strength, record borrowing rates and risk reduction prompted fund and investor liquidation, said James Moore at thebulliondesk.com.

Gold was no longer benefiting from its status as a haven in times of economic turmoil. In late September, the precious metal had enjoyed its biggest one-day gain in almost three decades as equity markets plunged in response to the global financial crisis.On the London Bullion Market, gold slumped to $828 an ounce at Friday’s late fixing from $902 a week earlier.

Silver plunged to $11.20 an ounce from $13.18.

On the London Platinum and Palladium Market, platinum fell to $959 an ounce at the late fixing on Friday from $1,140 a week earlier.

Palladium slid to 197 dollars an ounce from $235.

BASE METALS: Base metals prices plunged.

Metals prices have crumbled, said analysts at Barclays Capital.

That metals consumption, particularly copper, aluminium and zinc, is closely related to economic cycles, this rapid deterioration in macroeconomic conditions has negative repercussions for the demand outlook, they said in a research note.

By Friday, copper for delivery in three months had fallen to $5,855 per ton on the London Metal Exchange from $6,825 a week earlier.

Three-month aluminium dropped to $2,290 per ton from $2,514.

Three-month lead slid to $1,710 per ton from $1,985.

Three-month zinc declined to $1,580 per ton from $1,810.

Three-month tin decreased to $16,859 per ton from $17,951.

Three-month nickel tumbled to $15,399 per ton from $17,198.

COFFEE: Coffee prices hit 10-month lows.

Arabica and Robusta coffee values slumped to the lowest level since December 2007 on Thursday as a strong dollar drove down prices of soft commodities, said the Public Ledger.

By Friday on LIFFE, London’s futures exchange, Robusta for November delivery fell to $1,924 per ton from $2,128 a week earlier.

On the New York Board of Trade (NYBOT), Arabica for December delivery slid to 123.55 US cents per pound from 135.80 cents.

COCOA: Cocoa prices declined but supply worries could soon see them rebounding.

Ivory Coast’s 2008/09 cocoa season failed to open on time on October 1 as shipping firms were still waiting for documentation to arrive while heavy, persistent rains in the country’s main growing zones continue to raise concerns about the spread of black pod disease, noted the Public Ledger.

By Friday on LIFFE, the price of cocoa for December had slipped to 1,426 pounds per ton from 1,536 pounds a week earlier.

On the NYBOT, the December cocoa contract retreated to $2,461 per ton from $2,756.

SUGAR: Sugar prices fell but were expected to rally going forward.

The market is entering a transitional period before being driven by a stronger sentiment, linked to a deficit of production expected in 2009,said Sucden analyst Karim Salamon.

By Friday on LIFFE, the price per ton of white sugar for December delivery dropped to 358 pounds from 404 pounds the previous week.

On NYBOT, the price of unrefined sugar for March delivery fell to 12.67 US cents per pound from 14.59 cents.

GRAINS AND SOYA: Grains and soya prices headed south in line with other commodities.

By Friday on the Chicago Board of Trade, maize for December delivery was down at $4.63 per bushel from $5.43 the previous week.

November-dated soyabean meal -- used in animal feed -- fell to $10.21 from $11.64.

Wheat for December delivery dropped to $6.51 per bushel from $7.16.

RUBBER: Malaysian rubber prices continued their decline amid weak demand as automobile makers and other industries slowed production.

A dealer with a rubber trading firm said the market had yet to reach bottom.

On Friday, the Malaysian Rubber Board’s benchmark SMR20 fell to 254.30 US cents per kilo from 279.00 US cents per kilo a week earlier.—AFP