Commodities: Oil inches towards $80

Date: Monday 22 Feb 2010

US crude oil futures struck another day of gains Friday on concern about a series of strikes in French refineries and amid lingering unease about Iran’s nuclear intentions.

Workers at Total's six French refineries extended their three-day strike on Friday. Meanwhile heightened tensions about Iran's nuclear programme drove demand for oil.

OPEC’s second largest oil producer has been at odds with Western governments over its nuclear ambitions for some time.

Crude for March delivery closed up 75 cents at $79.81 a barrel on the New York Mercantile Exchange.

Oil traders were encouraged by gains amongst US stocks after a smaller than expected rise in consumer prices soothed jitters that the Fed would lift benchmark interest rates. The central bank raised the discount rate, the rate at which it lends money to banks, by 25 basis points to 0.75%, but added that the move would not lead to a rise in the benchmark lending rate any time soon.

Oil’s advance was limited however as the dollar gained against major currencies.

Among precious metals gold for April delivery rose $3.40 to settle at $1,122.10 an ounce on Friday after US inflation data came in smaller than expected.

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