Crude prices rise; platinum, gold see new records

Crude oil prices rose in New York and London Friday as initiatives to stimulate the US economy provided some optimism that recession, and a decline in oil demand, can be avoided.

At just before the close of floor trade on the New York Mercantile Exchange, West Texas Intermediate crude March contracts had added $1.39 to $90.80 per barrel, while Brent crude for March delivery was up $1.90 to $90.97 per barrel on the ICE Futures Europe exchange in London.

Nymex February gasoline added 4 cents to $2.32 per gallon and March heating oil was also 4 cents higher to $2.51 per gallon while March natural gas gained 11 cents to $7.89 per million British thermal units.

Other issues affecting the price of oil included a report that demand in China was 6.4 percent higher in Decmeber, bad weather that closed at least one offshore drillling platform and triggered the evacuation of nonessential personnel from several others near Norway, and a statement from Iraq’s oil minister that production there has recently increased and is expected to increase more this year.

Precious metals prices were also higher, with gold and platinum both seeing record highs.

April platinum was $67.10 higher to $1,680.10 per troy ounce shortly before the close of floor trade in New York after reports that South African mines were forced to shut down due to a lack of electricity to run operations.

Meanwhile, February gold was as high as $924.30 per troy ounce, a new record, and was trading at $910.40 per troy ounce at last report, a gain of $4.60 on the day.

March silver was also higher, adding 15 cents to $16.48 per troy ounce.

Among base metals, March copper added 1 cent to $3.18 per pound in New York and was $95 higher to $7,115 per tonne in London on reports that inventories tracked by the Shanghai Futures Exchange in China dropped by 32 percent during the week.

Grains prices were also higher in Chicago as it looked as if overseas demand is up on a weak dollar.

March corn on the Chicago Board of Trade was up 9 cents to $4.98 per bushel while March soybeans added 12.5 cents to $12.43 per bushel and March wheat gained 24 cents to $9.33 per bushel.

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