NEW YORK, 4 February 2006 — Oil prices edged up yesterday as markets awaited a decision from the International Atomic Energy Agency on referring Iran to the UN Security Council over its nuclear program.
Price gains were limited as the United States has said it is not presently seeking sanctions against Iran, OPEC’s second-largest oil producer. The IAEA board adjourned yesterday’s meeting until Saturday morning without reaching a consensus.
Light, sweet crude for March delivery rose 27 cents to $64.95 a barrel in midday trading on the New York Mercantile Exchange. The contract had dropped $1.88 a barrel on Thursday. Brent crude for March rose 14 cents to $63.02 a barrel on London’s ICE Futures exchange.
Heating oil rose more than a cent to $1.7825 a gallon on the Nymex, while gasoline gained less than a cent to $1.6670 a gallon. Natural gas slipped 1.7 cent to $8.330 per million British thermal units.
Meanwhile, the euro dropped below $1.20 in trading yesterday in Europe after a new report showed the US economy began 2006 on firmer footing that had been thought.
In afternoon European trading, the 12-nation currency bought $1.1987, down from $1.2096 in New York trading the night before, when it rose after the European Central Bank laid the groundwork for a rise in interest rates as early as next month.
The British pound was down to $1.7629 Friday from $1.7796 the night before.
The U.S. dollar bought 119.22 Japanese yen, up from 118.45, and setting six-week highs in part on speculation that Friday’s US payrolls data for January will reinforce confidence in the strength of the US economy.
Meanwhile, US stocks fell yesterday. The Dow Jones Industrial Average was down 45.79 points, or 0.42 percent, at 10,806.19. The Standard & Poor’s 500 Index was down 7.76 points, or 0.61 percent, at 1,263.08. The NASDAQ Composite Index was down 17.71 points, or 0.78 percent, at 2,263.86.
UK stocks ended slightly higher yesterday. By the end of trade, the FTSE 100 index was up 12 points at 5,759.3 - ending slightly down on the week despite the session rise.
The DAX index ended at 5657.12 points, up 7.52 or 0.13 percent and adding 9.7 points during the week.
In Paris, the CAC-40 index closed at 4937.56 points, up 9.67 or 0.20 percent, but dropping 19.04 points in the week.
The Nikkei finished the day down 50.91 points at 16,659.64, rising 198.96 points over the week.
