Commodities Report

Tue, 17 Jun 2008 08:58



OIL

World oil-prices have fallen this morning, that's amid uncertainty over Saudi Arabia's pledge to increase production output. Market Speculation swirled ahead of Saudi Arabia's extraordinary Summit of oil-producing nations. Consumer nations will also participate at the meeting, which is to be held this Sunday, in Jeddah. The focus will be on the exceedingly high oil-prices. On Sunday, the United Nations Secretary General Ban Ki-Moon said that the Saudi Oil Minister Ali al-Nuaimi has told him that the desert kingdom intends to hike oil output by 200,000 barrels per day in July. Saudi Arabia has a quarter of the world's proven oil reserves.

GOLD

The outlook for the precious metal remains positive, as oil prices rally to new highs, that's despite news of a possible hike in oil output. Analysts say that gold is starting to find its own feet, in an inflationary climate, and over a longer period of time, it should out-perform most other commodities. Gold has steadied this morning, hovering near its highest-level in a week. Traders say any dip in the dollar, is likely to spur another round, of buying from speculators.