WTI drops 88 cents on session

Unemployment data from the US Labor Department hurt oil prices Friday as the numbers pointed to continued weakening of the economy, which could cut demand for oil and oil products further.

West Texas Intermediate crude for February delivery was down 88 cents to $40.82 per barrel at the close of floor trade on the New York Mercantile Exchange, while at last report Brent crude was down 4 cents to $44.63 per barrel.

In afternoon trade, Nymex February gasoline futures were up 1 cent to $1.10 per gallon but February heating oil dropped 6 cents to $1.46 per gallon.

According to the Labor Department, the unemployment rate rose to 7.2 percent in December, the highest in sixteen years, while those still working saw their average work week fall to just 33.3 hours, the fewest since 1964.

Even the news that Saudi Arabia will cut production in February to meet OPEC production targets was not enough to push prices higher.

March copper added 8 cents to $1.56 per pound in New York on hopes that President-elect Barack Obama’s stimulus plan will boost demand for industrial metals.

Meanwhile, three-month copper added $231 to $3,426 per tonne in London.

Precious metals prices were also up during the session as February gold added 50 cents to $855 per troy ounce around the close of floor trade in New York, while March silver was up 22 cents to $11.32 per troy ounce and April platinum was up $10.90 to $1,005.50 per troy ounce.

Grains prices saw gains on the Chicago Board of Trade as March corn added 4 cents to $4.10 per bushel, March wheat was up 17 cents to $6.29 per bushel and January soybeans gained 48 cents to $10.37 per bushel.

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