LME Copper New Record High (Dow Jones)

DJ MARKET TALK: Commodity Roundup: LME Copper New Record High 2346 GMT [Dow Jones] COMMODITY SUMMARY: LME copper hits new record high of $8,940/ton overnight Wednesday, aluminum also up as strong fund buying hits buy stops. Other base metals slip; crude oil edges higher. Copper prices could continue higher with the ongoing mining strike in Peru, now starting to affect some production, supporting prices, says MF Global analyst Edward Meir. But several analysts and traders say copper and aluminum - while stronger performers of base metals - could face difficulties pushing significantly higher in environment of poor demand, minimal supply disruptions. Strike in Peru still ongoing, government declares worker action illegal. LME 3-month copper up $105 vs PM kerb at $8,715, aluminum up $46 at $3,200, lead down $60 at $1,705, zinc down $61 at $1,865, nickel down $400 at $21,150, tin up $495 at $23,100. Spot gold trades close to 10-week highs overnight as oil rises, USD falls after earlier softer tone on profit-taking; spot gold at $942.95/oz, down $2.35 vs NY close, silver at $18.31, down 6 cents, platinum at $2,070.50, up $15.50, palladium at $462.50, down 50 cents. Nymex August crude futures up 28 cents at $143.87/bbl. (EFB)

Aluminum Prices To Target $3,600/MT By Year End (Dow Jones)

DJ MARKET TALK: Aluminum Prices To Target $3,600/MT By Year End 1222 EDT [Dow Jones] - Aluminum prices will trend up and will target $3,600 per metric ton by the end of the year and up to $4,250 per metric ton by the end of 2009, largely because China has changed the fundamentals of the industry, says Jorge Vazquez, founder and vice president of HARBOR Intelligence’s Aluminum Intelligence Unit. “The upward trend in prices could last beyond this decade,” Vazquez says at the firm’s Chicago conference, adding that many respected analysts expect aluminum prices will have a difficult time trading permanently below $3,100 per metric ton. Vasquez says China’s structural demand boom and a restrained supply have played a major role in unleashing an upward trend in aluminum output and capex costs, leading prices into a long-term uptrend. (RJD)

Oil drops on report Saudi mulling output hike

NEW YORK, June 13 (Reuters) - Oil prices fell on Friday on a report that Saudi Arabia may increase production to stem crude’s record rally to peaks near $140 a barrel.
U.S. crude oil settled down $1.88 at $134.86 a barrel, while Brent crude settled $1.84 lower at $134.25 a barrel.
Saudi Arabia is considering bringing output to near record levels of around 10 million barrels per day ahead of a meeting of producer and consumer nations in Jeddah on June 22, the Middle East Economic Survey reported on Friday.
The world’s top oil exporter is expected to pump 9.45 million bpd this month, after announcing in May plans to increase output by 300,000 bpd to make up for production shortfalls by other members of the Organization of Petroleum Exporting Countries.
“Saudi Arabia is trying hard to talk the market down,” said John Kilduff, senior vice president at MF Global.
Separately, Saudi Oil Minister Ali al-Naimi, speaking to the state news agency SPA, reiterated that market fundamentals did not justify current prices and that producers and consumers would seek a solution in Jeddah.
“The kingdom called this meeting based on its positive role in international relations … and its commitment to the world economy and a balanced global oil market,” Naimi said.
Oil prices have jumped 40 percent this year to a record above $139 a barrel, causing protests around the world.
Prices have jumped more than six-fold since 2002 as supply struggles to keep pace with demand in emerging markets, especially China and India.
Further support this year has come from a wave of cash from investors seeking a hedge against rising inflation and the falling dollar.
Oil demand growth has shown signs of faltering under high prices.
OPEC on Friday became the latest group to cut its forecast for global growth in oil demand in 2008, adding that it is pumping more than the forecast demand for its oil.
The International Energy Agency this week cut its demand growth forecast for 2008 to 800,000 bpd. (Reporting by Matthew Robinson, Robert Gibbons, Gene Ramos in New York; Santosh Menon in London; Baizhen Chua in Singapore; Editing by Walter Bagley)