LONDON, Feb 10: Oil prices jumped above $60 per barrel this week, while precious metals sparkled and base metals mostly fell.

OIL: World crude prices leapt above $60 per barrel in New York, making sharp gains as colder weather conditions gripped the northern hemisphere and sparked concern over rising heating fuel demand.In the United States -- the world's biggest energy consumer -- a government report revealed that distillate inventories, which include heating oil, tumbled 3.7 million barrels to 136.3 million barrels last week amid the cold snap.

American weather forecasters say that colder weather is on the way for the next fortnight.

Speculative buying and the shutdown of a California oil field following an explosion and fire had also helped drive prices.

Traders also fretted over renewed US-Iran tensions and declining output from the Organization of the Petroleum Exporting Countries.

By Friday in New York, a barrel of crude for delivery in March rose to $59.60 per barrel from $57.45 the previous week.

In London, a barrel of Brent North Sea crude for delivery in March jumped to $58.74 per barrel, from $56.97.

GOLD: Gold prices hit the highest point for nearly eight months, jumping above 664 dollars an ounce, finding further support from higher crude prices and a weaker US currency” according to UBS analyst John Reade.

The precious metal benefits from higher oil prices because they increase the risk of inflation, which in turn increases the attractiveness of gold as a defence against the erosion of the value of money.

A weak dollar can meanwhile make gold cheaper for buyers using other currencies.

On the London Bullion Market, gold prices soared to $664.50 per ounce at Friday's late fixing, from $629 the previous Friday.

SILVER: Silver prices climbed in the wake of gold's increase to reach the highest levels in more than a month, to $13.925 an ounce.

On the London Bullion Market, silver prices rose to $13.84 per ounce at Friday's late fixing, from $13.22 the previous week.

PALLADIUM AND PLATINUM: Palladium and platinum prices rebounded.

Platinum reached the highest point for three and a half months, above $1,200 an ounce on supply concerns caused by a strike at a mine in South Africa.

On the London Platinum and Palladium Market, platinum advanced to $1,196 per ounce at the morning fixing Friday, from $1,169 the previous week.Palladium rose to $336 per ounce, from $349 one week earlier.

BASE METALS: Base metals prices mainly fell this week with copper and zinc taking heavy dents as investors exited the market on value concerns. However nickel came close to 18-year highs.

All sorts of funds, hedge or technical trading funds, have been selling on the belief prices will go lower still and that might well be the case, UBS analyst Robin Bahr said.

But Bahr added that there has been some trade buying from consumers and merchants at the lower prices.

Copper was in particular hit hard, dropping to $5,250 a ounce in London, close to the lowest level since last March.

Bahr said copper, which has seen its price plunge 30 per cent since November, could fall to $5,000 before rebounding.

Base metals prices should win support ahead meanwhile.

The world's biggest miner BHP Billiton earlier this week reported a record first-half profit of $6.17bn and said it expected China to continue to drive global demand for commodities.

On Friday, three-month copper prices fell to $5,450 per ton on the London Metal Exchange from $5,500 the previous week.

Three-month aluminium prices dipped to $2,680 per ton from $2,700.

Three-month nickel prices slid to $36,050 per ton from $37,505 dollars.

Three-month lead prices declined to $1,610 per ton from $1,660.

Three-month zinc prices dropped to $3,140 per ton from $3,270.

Three-month tin prices gained to $12,255 per ton from $11,825 a week earlier.

COCOA: Cocoa prices rose to the highest level for more than seven months this week, supported by speculation surrounding possible supply shortages in West Africa.

The market was underpinned by signs that West Africa's cocoa mid-crop has probably been affected by recent hot and dry weather, Sucden analyst Michael Davies said.

Prices hit the highest points since mid-July, striking 944 pounds a ton in London and 1,763 dollars a ton in New York.

On the LIFFE, London's futures exchange, the price of cocoa for March delivery jumped to 939 pounds per ton on Friday, from 901 pounds a week earlier.

On the New York Board of Trade (NYBOT), the May contract increased to $1,742 per ton on Friday, from $1,650 the previous week.

COFFEE: Coffee prices fell in New York, as Ivory Coast said its exports fell by a quarter between last October and January 2007, compared with the same period a year earlier.

Meanwhile Brazil announced that it would delay by one month supplies for the 2007/08 season owing to strong rain.

On LIFFE, Robusta quality for March delivery climbed to 1,605 dollars per ton on Friday, from 1,601 dollars a week earlier.

On NYBOT, Arabica for March delivery stood at 115.10 cents per pound on Friday, from 118.20 cents the previous week.

SUGAR: Sugar prices dropped to the lowest point in four and a half months in New York trade after the International Sugar Organization revised upwards its supply forecast for 2007.

By Friday on LIFFE, the price of a ton of white sugar for March delivery fell to $333.70 at about 1600 GMT, compared with $341.50 a week earlier.

On NYBOT, the price of unrefined sugar for March delivery slipped to 10.36 US cents per pound, from 10.57 US cents the previous week.

GRAINS AND SOYA: Grains prices rose in Chicago, as the US government revised lower its estimate for global wheat stocks in 2006/07.

The US Department of Agriculture said it was forecasting stockpiles of 120.80 million tons, compared with an estimate of 121.83 million made in January.

On the Chicago Board of Trade, the price of wheat for March delivery rose to US$4.63 per bushel on Friday, from $4.57 the previous week.

Maize for March delivery edged up to $4.06 per bushel on Friday, from $4.05 the previous week.

March-dated soyabean meal -- used in animal feed -- advanced to $7.45 on Friday, from $7.24 the previous week.

On the LIFFE, the price of a ton of wheat for March delivery fell to 92.60 pounds, from 94.50 pounds the previous week.—AFP