Metals prices soar as oil declines

With some signs that a diplomatic solution might be found in the standoff between Iran and the UK over 15 British military personnel held by the Iranians, crude oil prices dropped on Tuesday. Brent crude for May delivery was $1.16 lower to $67.58 per barrel late in the afternoon on the Intercontinental Exchange in London, while May contracts for West Texas Intermediate crude fell $1.60 in afternoon trade to $64.34 per barrel on the New York Mercantile Exchange.

Meanwhile, metals prices were higher. In precious metals, gold was over $2 higher to $666/$666.50 per troy ounce.

Some base metals saw substantial gains. Prices for three-month copper added 5 percent on the session, to $7,260 per tonne on the London Metal Exchange. The day’s advances took copper’s rise to 38 percent since February. The gains come as predictions of supply versus demand have shifted since the beginning of the year, when there was wide belief that supply would top demand this year. However, more current forecasts expect demand to be higher than supply in the second quarter, which is traditionally the peak demand period for copper.

Three-month nickel added 6 percent to its price on the day, trading at $48, 550 late in the session after having risen as high as $48,585 per tonne earlier in the day. Lead was also higher, adding $40 to $1,965 per tonne. The price of lead has risen 18 percent so far this year, supported by demand for lead-acid batteries.

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