Oil, metals rise on weakening US dollar

Crude oil prices were higher in New York on Monday, approaching the $80 per barrel level during the day as equities markets saw gains and the US dollar weakened again.

November contracts for West Texas Intermediate crude were up $1.05 to $79.59 per barrel at about 5 minutes before the close of trade on the New York Mercantile Exchange, but by early afternoon New York time Brent crude had dropped 2 cents to $76.97 per barrel on the ICE Futures Europe exchange in London.

Earlier, in morning trade in New York, Nymex November gasoline futures and December heating oil futures both traded even, at $1.98 per gallon and $2.06 per gallon respectively, while December natural gas added 3 cents to $5.74 per million British thermal units.

Metals prices also saw gains.

December copper added 12 cents to $2.97 per pound in New York trade, while three-month copper was up $210 to $6,440 per tonne on the London Metal Exchange.

Gains for copper prices came not only on the weaker dollar, but also on miners’ strikes in Chile in Peru, although the Peru strike, scheduled to last 48 hours, did not seem to be gaining much support according to reports.

Prices for other base metals were also higher in London.

Precious metals prices were also higher as the dollar weakened, with December gold adding $6.70 to $1,058.20 per troy ounce in New York while December silver was up 21 cents to $17.63 per troy ounce and January platinum was $15.70 to $1,364.20 per troy ounce.

In mid-morning trade in New York, December palladium followed platinum higher to gain $2.35 to $333 per troy ounce.

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