Oil prices rise significantly

Oil prices jumped again Monday as the US dollar weakened and new data showed that manufacturing was up in the United States, China and the UK in July, raising hopes that demand for oil and oil products will grow soon as the economy recovers.

September contracts for West Texas Intermediate crude added 2.13 to $71.58 per barrel at the close of trade on the New York Mercantile Exchange after going as high as $71.95 per barrel earlier in the session, while Brent crude was up $1.77 to $73.47 per barrel on the ICE Futures Europe index in London.

Nymex September gasoline futures were up 6 cents to $2.07 per gallon while September heating oil added 5 cents to $1.88 per gallon and September natural gas gained 39 cents to $4.05 per million British thermal units.

Metals prices were also higher on the news about gains in manufacturing as the Institute for Supply Management reported that its US factory index was up to 48.9 in July, up from 44.8 in June and more of a gain than expected.

December gold was up $3.70 to $959.50 per troy ounce around the close of floor trade in New York, while September silver added 31 cents to $14.25 per troy ounce and October platinum was $25.50 higher to $1,239.70 per troy ounce.

In morning trade, meanwhile, September palladium had added $8.90 to $273.50 per troy ounce in New York trade.

September copper added 12 cents to $2.74 per pound in New York, while three-month copper gained $276 to $5,995 per tonne on the London Metal Exchange after going as high as $6,011 per tonne earlier in London trade on hopes that demand for the metal used extensively in manufacturing and construction will increase.

Tin, lead, aluminium, zinc, and nickel also all saw gains on the session.

Grains prices were little changed in afternoon trade in Chicago as September wheat and September corn each gained less than a cent to $5.49 per bushel and $3.58 per bushel respectively, while August soybeans dropped less than a cent, to $11.73 per bushel.

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