Crude oil higher on geopolitical issues

Crude oil prices were higher Friday after the Israeli military carried out exercises in the Mediterranean Sea that some interpreted as a rehearsal for an attack on Iranian nuclear sites.

July contracts for West Texas Intermediate crude, which expired at the end of the trading day, added $2.69 to $134.62 per barrel while the more heavily traded August contracts added $2.76 to $135.36 per barrel and Brent crude for August delivery gained $1.98 to $133.98 per barrel on the ICE Futures Europe exchange in London.

Nymex July gasoline added 9 cents to $3.43 per gallon while August heating oil was up almost 6 cents to $3.77 per gallon and August natural gas gained 24 cents to $13.23 per million British thermal units.

Prices were pushed up after Royal Dutch Shell (LSE: RDSA, RDSB; LSE: RDS.A, RDS.B) said that a recent attack on one of its oil fields in Nigeria means it will not be able to meet some of its contracts, by a decision from workers that a strike against Chevron’s (NYSE: CVX) Nigerian operations will begin on Monday, and on doubts that China’s move to raise fuel prices would cut demand there.

The price of copper was up Friday on the weaker dollar.

September copper added 5 cents to $3.83 per pound in New York, while three-month copper on the London Metal Exchange ended $105 higher to $8,435 per tonne, or $3.80 per pound, as LME stockpiles dropped 225 tonnes on the session.

In precious metals, August gold dropped 50 cents to $903.70 per troy ounce in New York after trading higher for most of the day, while July silver was down 7 cents to $17.40 per troy ounce but July platinum added $6.60 to $2,062.40 per troy ounce.

Grains prices were down Friday afternoon, with July corn on the Chicago Board of Trade down 6 cents to $7.21 per bushel as CBOT July soybeans fell 13 cents to $15.32 per bushel and July wheat dropped 14 cents to $8.66 per bushel.

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