Crude oil declines; metals prices mixed

Metals prices were mixed Tuesday. Among precious metals, gold was 0.2 percent higher to $656.75 per troy ounce in late trade in London. Meanwhile, in New York in midday trade, silver added 22 cents to $13.30 per troy ounce. On the other hand, July platinum in New York dropped $13 to trade at $1,264.80 per troy ounce.

Base metals were lower as well, with most higher. Zinc, however, dropped 0.4 percent to $3,625 per tonne on the London Metal Exchange even though LME inventories of the metal fell by 1,250 tonnes. Elsewhere, tin added 0.2 percent to $13,925 per tonne and nickel prices were 3.2 percent higher to $47,800 per tonne.

Lead gained 0.9 percent to $2,240 per tonne after falling back from a new record high of $2,250 per tonne as LME stockpiles were down 200 tonnes to 46,700 tonnes.

Copper added 0.6 percent to $7,245 per tonne. Strong Chinese demand, which was up 25 percent in the first two months of 2007 compared to 2006, resulted in a production deficit of around 51,000 tonnes in February of this year.

Meanwhile, crude oil prices were much lower after a strike in Nigeria ended and the nation’s new president said that he will address the violence by militants that has stopped up to a quarter of the nations oil output. Prices were also helped lower by the news that refineries which have been closed in Texas, Louisiana, and Delaware would return to normal operations after closures for repairs and maintenance.

Brent crude for July delivery dropped by $1.12 to $68.59 per barrel on the Intercontinental Exchange in London, while by mid-afternoon on the New York Mercantile Exchange July contracts for West Texas Intermediate crude had dropped $2 to $63.20 per barrel.

June Nymex gasoline was 10 cents lower to $2.30 per gallon, while July heating oil fell 7 cents to $1.87 per gallon. Nymex July natural gas was down 8 cents to $7.72 per million British thermal units.

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