Copper remains strong, crude oil futures crosses Rs 6,000-mark

Written by Commodities Bureau | Mumbai, Jun 29 | Updated: Jul 1 2008, 05:24am hrs
Copper and crude oil futures prices rallied further on the week ended on Friday on the MCX platform mainly on strong global reports amid steady buying support from local traders.

Crude oil prices in the international markets rushed to a new record high of over $142-a -barrel on Friday as investors poured money into commodities amid a weakening dollar. Gold futures, however, recovered its previous losses and finally ended higher over previous week. On the other hand, silver futures ended lower on lack of continued support from local stockists.

July crude-oil contracts were higher at Rs 6,067 per barrel, up by Rs 309 over previous week. The total volume touched 32.27 lakh barrels, while the open interest was 13.83 lakh barrels. Light, sweet crude for August delivery surged as high as $142.26 in early electronic trading on the New York

Mercantile Exchange, surpassing the previous intraday record of $139.89 earlier in June after the chief of Libya's national oil company said that the north African nation may reduce production rates because the market could have an oversupply and a statement by the president of the Organisation of Petroleum Exporting Countries (OPEC) who said that oil could trade toward $170 a barrel in 2008.

The active copper June contracts were higher at Rs 361.70 per kg, up by Re 1 over previous week. The open interest was 9,935 tonne and volume was 7,948 tonne. A weak US dollar has buoyed base metals with copper rising more than 2% after an ambivalent US central bank statement. Metal prices have recently been hostage to euro and US dollar movements, due to little fundamental news and lack of demand from China, the world's biggest consumer.

The active August gold contract was 2% higher at Rs 12,782 per 10 gram, up by Rs 219 per 10 gm over previous week. The total volume was 21,617 kg when the open interest was 8,825 kg. Gold continued to trade higher on Friday having earlier hit a one-month high above $920 per ounce, with record oil prices, weakness in the dollar and global economic fears, boosting the precious metal.

The active silver July contract was traded lower at Rs 24,518 per kg, down by Rs 91 over previous week. The open interest was 123 tonne and volume, 322 tonne.