Oil prices fall, metals see gains on US jobs news

The price of crude oil dropped Friday on the news that the United States economy lost 598,000 jobs in January, raising fears that a further deepening of the recession could lead to further declines in demand for oil and oil products.

March contracts for West Texas Intermediate crude was down 99 cents to $40.18 per barrel at the close of floor trade on the New York Mercantile Exchange, while at last report Brent crude for March delivery had dropped $1.11 to $45.35 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade, Nymex March gasoline futures were down a cent to $1.27 per gallon while March heating oil added a cent to $1.38 per gallon and March natural gas was 13 cents higher to $4.78 per million British thermal units.

March copper was up 13 cents to $1.63 per pound in afternoon trade in New York, while three-month contracts for copper gained $235 to $3,565 per tonne on the London Metal Exchange.

Copper prices rose on hopes that a proposed US stimulus package will pass Congress and help the economy enough to raise demand for the metal used in construction and industry.

Among precious metals, silver and platinum prices were higher on speculation that spending by governments will raise demand for them as well, but a rally in global equities markets and the prospect of the passage the stimulus plan in the US limited gains for gold.

April gold added 90 cents to $914 per troy ounce while March silver was up 41 cents to $13.16 per troy ounce and April platinum gained $22.30 to $1,000.20 per troy ounce.

Meanwhile, grains prices were mixed on the Chicago Board of Trade.

CBOT March corn was 6 cents higher to $3.77 per bushel and March soybeans added 21 cents to $10.01 per bushel, but March wheat dropped 4 cents to $5.57 per bushel.

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