Finance Markets

December 15, 2006

Oil prices rise at least 1 percent on week

Permalink: Oil prices rise at least 1 percent on week

Filed under: Commodities, Oil, Metals, Economy

Crude oil prices rose on Friday after the Organization of Petroleum Exporting Countries decided to cut oil production by another 500,000 barrels per day. The cuts will not take effect until February 1. Some analysts saw the cut as overdone, with Barclays Capital saying that the new cut holds the risk of tightening the market too much.

Brent crude February contracts added 27 cents by late afternoon in London, to $63.16 per barrel. The increase took Brent’s gains to 1.5 percent on the week. January delivery West Texas Intermediate crude was 30 cents higher to $62.81 per barrel in late morning trade on the New York Mercantile Exchange, a gain of over 1 percent for the week.

In the metals markets, gold dropped $2 on Friday but ended the week just $1 lower as it traded at $623.20/$624.70 per troy ounce.

Most base metals saw declines on the day, while tin was steady at $11,050 per tonne after having hit a 20-year high on Tuesday at $11,275 per tonne. Copper dropped to $6,620 per tonne as London Metal Exchange inventories rose. After gains earlier in the week, aluminium fell $62 on Friday to $2,802 per tonne. Lead dropped $5 on Friday and was more than 7 percent lower than a record reached on Tuesday as it traded at $1,660 per tonne on Friday, but lead prices remained up approximately 70 percent since the beginning of the year. Nickel dropped $400 on Friday but remains 150 percent higher than at the beginning of the year and hit a record $35,000 per tonne before dropping to $34,350 per tonne late in the trading day.

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