Oil, gold prices drop significantly

July contracts for Brent crude was down $2.55 to $68.67 per barrel on the Intercontinental Exchange in London, while by mid-afternoon, West Texas Intermediate for July delivery dropped $2.01 to $64.92 per barrel on the New York Mercantile Exchange. July Nymex gasoline and heating oil each dropped 7 cents, to $2.12 per gallon and $1.90 per gallon respectively, while natural gas was 11 cents lower to $7.72 per million British thermal units.

Prices were helped lower by the reopening of Oman’s oil shipping terminal after a three-day shutdown during the Cyclone Gonu. Higher US gasoline stockpiles last week also helped the decline in prices. Additionally, worries about higher interest rates led to speculation that demand could slow helped declines both in oil prices and in prices for other commodities.

Among the other commodities prices that declined on the day were metals prices. Gains by the dollar sent gold lower in New York. August gold fell $14.90 in early afternoon trade to $650.30 per troy ounce on the New York Mercantile Exchange. July silver was lower as well, dropping 44 cents to $13.04 per troy ounce, while platinum lost $8.70 to $1,286.80 per troy ounce. Base metals were lower both in London and in New York, where copper dropped 12 cents to $3.26 per pound.

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