NEW YORK (Commodity Online) : Global oil prices plunged as commodity markets across the globe reeled under the impact of the powerful earthquake and tsunami that shocked world’s third largest economy, Japan.
Light sweet crude for April delivery ended trading at $101.16 a barrel after hitting as low as $99.01 a barrel earlier in the day.
London’s Brent crude futures for April delivery fell $1.59 to settle at $113.84 a barrel, losing 1.8 percent on the week.
However, gold took a somersault on its way to finish higher for the week after traders began safe haven buying following japans’ devastating tsunami.
Gold futures for April delivery rose $9.30, or 0.7 per cent, to settle at $1,421.80 on the Comex in New York, the biggest gain for a most-active contract since March 4.
The precious yellow metal climbed the most in a week as Japan’s earthquake impact boosted it safe haven appeal already up by tensions in the Middle East and North Africa.
Meanwhile, Silver futures for May delivery gained 86.9 cents, or 2.5 per cent, to $35.935 an ounce. This week, the price gained 1.7 per cent, the seventh straight gain and the longest rally in three years. The metal has more than doubled in the past 12 months.
Analysts expect the black gold to fall further during next week as they see Japan cutting crude imports and also on chances of follow up tsunamis in coming days. Japan is the world’s third- largest oil user.
On the other hand, heating oil and gasoline futures held up better than crude, receiving support from expectations that Japan will require more fuel imports after the quake and tsunami affected about a fifth of its capacity.
Japan on Friday closed most of its refineries other industrial facilities in the affected areas as the Nippon nation scrambled to reduce pressure in two nuclear plants damaged due to quakes.
Analysts said impacts from protests, though thinner, in Saudi Arabia were offsetted by Japanese tsunami and resulted in sharp declines in oil and gains for gold.
A day after the devastating quake, japan said it was still too early to grasp the full extent of damage or casualties. The confirmed death toll so far is almost 300, though media reports say it is at least 1,300.
