Crude oil, most metals prices higher

Crude oil prices were as high Monday as they have been all year as tensions continue between Iran and the West over the capture last week of 15 British sailors. Brent crude May deliveries gained $1.15 to $64.33 per barrel in late afternoon trade on the Intercontinental Exchange in London. West Texas Intermediate crude May contracts were 65 cents higher, to $62.93 per barrel early in the afternoon on the New York Mercantile Exchange, its highest prices since the day after Christmas last year.

Some analysts feel that the price would be going up even in the absence of the current political situation, however, based on recent OPEC production cuts, higher demand, and slow growth in non-OPEC output, all of which have caused supplies to tighten.

Around noon in New York, Nymex gasoline was 5.5 cents higher to $2.0535 per gallon, their highest level since September 2006, even though some analysts believe that traders could be overreacting to the beginning of the summer driving season and recent refinery shutdowns. Heating oil futures saw gains as well, adding almost 6 cents to $1.7696 per gallon, while natural gas dropped 3.2 cents to $7.237 per 1,000 cubic feet.

The price of gold was higher on Monday, gaining on the additional global geopolitical tensions. Gold traded in a range around $662.00/$662.60 late in the day in London, up from Friday’s late quote in New York of around $657/$658.

Base metals prices were mixed on the day. Three-month copper declined, falling $135 on the session to $6,855 per tonne. The decline comes after copper prices have gained 28 percent just since the beginning of February.

On the other hand, tin added $170 to $14,495 per tonne late in the day after going as high as $14,515 earlier in the session, a continuation of trends this year as traders worry about supply. Tin prices are up 26 percent since the beginning of the year. Nickel, meanwhile, gained $300 to $42,500 per tonne, the first time it has added to its price in a week after dropping 12 percent from a record high reached 10 days ago.

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