Demand, low stockpiles raise nickel prices

Oil prices were up on Tuesday as Iran refused to provide a reply to a set of incentives offered by the European Union and the United States in return for suspension of its nuclear development program. In addition, the Organization of Petroleum Exporting Countries asked once again for a “demand road map” from consumers and also repeated charges that oil is being taxed unfairly in Europe in relation to other energy sources.

Brent crude for August delivery was up 77 cents to $73.66 per barrel on the International Petroleum Exchange in London, while August contracts for West Texas Intermediate crude was up by 64 cents to $74.25 per barrel in early afternoon trade on the New York Mercantile Exchange.

Meanwhile, in the metals markets, three-month nickel rose to another new record high as it touched $25,700 per tonne before dropping back to $25,600 late in the day in London. The spot price for the metal, used in the manufacture of stainless steel, was even higher, at $27,650 per tonne in late trade. This brings nickel’s rise since the first of the year to 90 percent. Inventories in London Metal Exchange warehouses is down to 8,400 tonnes, half of it already paid for by customers who have not yet taken delivery. Higher demand from China is a key reason for the rising price of nickel. Copper, aluminium, and zinc prices were also higher.

Gold prices firmed by $15 to $637.50 per troy ounce after the train bombings in Mumbai during the evening rush hour there sent political tensions higher around the world. Silver was also up, by 50 cents, to $11.53 per troy ounce.

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