Prices mixed on rebounding US$ and supply jitters

London

COMMODITY markets diverged last week as traders balanced the strong dollar against supply concerns, while star performer cocoa hit seven-month peaks on output fears in key producer Ghana.

"Commodities in general . . . ended the week on the defensive, pressured by renewed dollar strength," said Capital Economics analyst Julian Jessop.

World oil prices fell on Friday on profit-taking and the strong dollar, but finished the week in positive territory on hopes that a global supply glut could end soon, dealers said.

Prices dropped on Monday and Tuesday as the ongoing global supply glut and soft demand overshadowed the impact of geopolitical tensions in the crude-rich Middle East.

They rebounded sharply on Wednesday and Thursday after the US Department of Energy (DOE) revealed sliding US petroleum supplies and production. The weekly DOE report stirred expectations of an easing in a supply glut that had sent prices tumbling in …