Oil prices higher on geopolitical, refinery issues

Crude oil prices were higher Friday on continuing geopolitical concerns in the Middle East, including the possibility of new UN sanctions against Iran; on refinery problems; and on hopes for a growing US economy after the Labor Department reported that 166,000 jobs, around double the expected number, were created in October in the US.

These issues plus reports that Hurricane Noel might have disrupted oil shipments during the week sent December contracts for West Texas Intermediate crude $2.44 to $95.93 per barrel after going as high as $96.05 per barrel earlier in the session, just short of the record high price set on Thursday.

Nymex December gasoline was up 10 cents to $2.42 per gallon and December heating oil gained 6 cents to $2.57 per gallon, while December natural gas dropped 22 cents to $8.42 per million British thermal units.

At-the-pump gasoline prices in the US averaged $2.942 per gallon nationwide, a gain of 2.9 cents per gallon overnight.

Precious metals prices were significantly higher in New York on Friday on continuing worries about the US subprime crisis and as the US dollar hit yet another low in relation to the euro during the session.

December gold was $14.80 higher to $808.50 per troy ounce after going as high as $810.70 per troy ounce earlier in the session, adding 1.9 percent on the day and 2.7 percent for the week, while gold for immediate delivery added $19.34 to $806.65 per troy ounce.

December silver also added 1.9 percent as it gained 27 cents to $14.60 per troy ounce, while January platinum was up $11.90 to $1,462.70 per troy ounce.

Copper prices were lower Friday in both New York and London.

December copper dropped 4 cents to $3.33 per pound in New York, while three-month copper on the LME fell $65 to $7,435 per tonne.

The New York price was the lowest in two months, while the London price hit its lowest level since mid-September when it fell to $7,390 per tonne during Friday’s session.

Prices for the metal, used in manufacturing and construction, fell on demand issues after manufacturing growth slowed in the United States and in Europe.

Among agricultural commodities, grains prices were higher.

December wheat on the Chicago Board of Trade were up 0.25 cent to $7.785 per bushel, while December corn added 2.25 cents to $3.77 per bushel and January soybeans gained 10.25 cents to $10.1678 per bushel.

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