Oil prices drop as metals see gains

Crude oil prices were down on Friday and over the week even though US Energy Secretary Sam Bodman warned that gasoline prices are likely to reach record territory over the summer. Gasoline stockpiles have dropped significantly and consistently over the past three months and there are worries that refineries might not be able to keep up with the demand generated by the summer driving season in the United States.

Still, June contracts for Brent crude on the Intercontinental Exchange in London dropped 10 cents to $65.95 per barrel on Friday, a 3.6 percent decline over the week. West Texas Intermediate crude for June delivery dropped 52 cents during the day to $62.67 per barrel on the New York Mercantile Exchange for a decline of 5.8 percent this week. In addition, Nymex May/June RBOB gasoline was 0.9 percent lower during the week to $2.2391 per gallon despite declining inventories.

Metals prices were up this week, with base metals gaining more than precious metals. Lead hit a record high of $2,115 per tonne on Friday and settled nearly that high at $2,107.5 per tonne for a gain of 4.3 percent this week. Prices for the metal were driven by a halt in exports from a Canadian-owned Western Australian company’s operations because of an ongoing investigation into lead poisoning at the facility.

Copper added 7.2 percent on the week to $8,300 per tonne as London Metal Exchange inventories dropped to 150,925 tonnes, their lowest level in six months. Nickel added 10.5 percent this week to trade at $51,500 per tonne. It hit a new record high of $51.600 per tonne on Friday as LME inventories were down to 3,354 tonnes in LME warehouses and the prospect of continuing tight supplies caused concern. Zinc was 12.6 higher on the week to $4,140 per tonne.

Among precious metals, gold gained 1.1 percent on the week to $688.50 per troy ounce, while platinum was up 2.7 percent to $1,321 per troy ounce on problems in South Africa and amid rumors that an exchanged traded fund will soon be launched in the United States.

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