Oil higher on new nuclear concerns

Crude oil prices briefly spiked back above the $61 per barrel level on Monday on the announcement from North Korea that it had tested a nuclear device, but West Texas Intermediate and Brent crude both dropped back below that level later in the session. Brent crude for November delivery reached as high as $61.38 per barrel, but later backed off to $60.99 per barrel, a gain of $1.16. WTI meanwhile, hit a session high of $61.09 per barrel but was later up 87 cents to $60.63 per barrel on the New York Mercantile Exchange.

The new geopolitical tensions also had an effect on the metals markets Monday, with gold adding 0.4 percent to $575.80 per troy ounce. The gain in the price of gold led other precious metals higher. Silver gained 2.4 percent to $11.36 per troy ounce, while palladium was 1.4 percent higher to $300 per troy ounce and platinum advanced 0.8 percent to $1,082 per troy ounce as volumes were up after last week’s holiday in China.

Base metals were mixed on the session. Copper was 0.4 percent higher to $7,492 per tonne, while zinc added 1.8 percent to $3,655 per tonne on a prediction of a market deficit both this year and next by the International Lead and Zinc Study Group. Lead was slightly weaker, trading at $1,412 per tonne, while nickel dropped 0.2 percent to $29,450 per tonne after going as high as $30,250 per tonne earlier in the session, a new record.

In other commodities, Chicago wheat prices hit a 10-year high, adding 30 cents to $4.94 per bushel.

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