Oil stays high as metal prices rise

Unrest in Libya disrupts crude output

February 28, 2011
by Purchasing b2b staff

TORONTO: Commodity prices are up—while oil prices remain high—amid continuing political unrest in the Middle East.

The Canadian dollar rose nine cents to 102.27 cents US as base and precious metal prices increased and oil prices remained above US$97 a barrel. As well, the April gold contract added US$6.30 to US$1,415.60 an ounce in electronic trading on the New York Mercantile Exchange, while copper gained four cents to US$4.48 a pound.

Oil prices lost 53 cents to US$97.35 a barrel after spiking last week as Libya’s violent power struggle continued to disrupt crude output.

Along with the direction of volatile oil prices, investors are focussing on the latest word from the Bank of Canada on when interest rates might rise and a report on economic growth at the end of last year.

The spike in prices to over US$103 a barrel last Thursday raised concerns that sharply higher prices would derail what is a fragile economic recovery in many parts of the world. Crude ended the week at US$97.88 amid signs the crisis in Libya may have cut crude supplies less than estimated.