COMMODITIES RISE TO RECORD

Tuesday, April 18, 2006 - Market news

Commodity prices rose to a record as concern over Iran's nuclear program sent oil to an all-time high and speculation about rising demand in China stoked buying of metals by investment funds. Copper has doubled to a record in the past year and zinc has jumped almost 150 percent as China's booming economy fuels demand for the raw materials used in cars, homes and appliances.

Commodities Rise to Record, Extending Rally as Oil, Copper Gain
April 18 (Bloomberg) -- Commodity prices rose to a record as concern over Iran's nuclear program sent oil to an all-time high and speculation about rising demand in China stoked buying of metals by investment funds.

Copper has doubled to a record in the past year and zinc has jumped almost 150 percent as China's booming economy fuels demand for the raw materials used in cars, homes and appliances. The Goldman Sachs Commodity Index of 24 commodities rose to a record today, led by gains in gasoil, sugar and natural gas.

``Part of the reason for the strong commodity prices is the fundamental demand out of China,'' said Brian O'Shaughnessy, chief executive officer of Rome, New York-based Revere Copper Products Inc. ``Speculators are feeding on those fundamentals to drive the prices beyond levels that reflect fundamental factors.''

Fund investments in commodities will rise 38 percent this year to $110 billion, according to Barclays Capital, amid speculation their returns will beat those on stocks and bonds. The 11 percent increase in the Goldman Sachs index

The Full Story at Bloomberg:
http://www.bloomberg.com/apps/news?pid=10000087&sid=aaLbI9lOuYWI&refer=top_world_news


Investing In Copper
Five-year ... ten-year ... 20 ... then 25-year ... now ALL TIME highs - copper prices are literally going nuts. The copper bull story is quickly told — and quickly grasped when you see the performance of Phelps Dodge, (one of the world's largest producers of the metal) in the past 16 months: Supply is down - Chile’s production has slipped and new mines aren’t being discovered.

Read the entire article at MoneyWeek:
http://www.moneyweek.com/file/11263/investing--in-copper.html


Record High Oil Prices
The record high oil prices were said to be fueled mostly by heightened concerns that oil exports from Iran would be cut off because of the worldwide political argument over Iran's nuclear program. North Sea Brent crude oil, the type pumped up by Norway, jumped 74 cents to an all-time high of USD 72.20 per barrel, reported Reuters.

North Sea Brent crude oil, the type pumped up by Norway, jumped 74 cents to an all-time high of USD 72.20 per barrel, reported Reuters. US West Texas Intermediate crude oil hit a record USD 70.88. As one analyst in Paris said, "the Iranian situation is making us all very nervous."

Iran is a major crude exporter, and the standoff over its nuclear program threatens its oil supplies. Nearly a quarter of Nigerian oil production, meanwhile, is shut down after rebel attacks two months ago. That puts more pressure on supply.

The effect on Norwegian oil-driven stocks was immediate. The Oslo Stock Exchange set new records as trading ...

The Full Story at -Aftenposten
http://www.aftenposten.no/english/business/article1282235.ece