Commodities prices up on session

Crude oil prices were up sharply on Thursday amid worries from several directions. Brent crude for July delivery added $1.27 to $71.21 per barrel on the Intercontinental Exchange in London, while July contracts for West Texas Intermediate crude gained $1.40 to $67.66 per barrel on the New York Mercantile Exchange. Nymex gasoline July futures was up 5 cents, to $2.2065 per gallon. Meanwhile, Nymex July heating oil was 4.8 cents higher to $2.0102 per gallon as stockpiles were at 35.4 percent lower than last year at this time, prompting fears that there will not be enough supply for next winter.

One worry came with from a warning issued by European governments that Iran could face more and broader sanctions if it will no cooperate with the West and insists on continuing its nuclear program. In the meantime, analysts worried about refinery utilization and production. Refineries are making 9.33 million barrels of gasoline per day despite utilization at just 89.2 percent last week, but the continuing trend of refineries running at 6.4 percent below the five-year average has some analysts wondering if capacity was more damaged by Katrina and other hurricanes than was reported by refiners. Some have called the current under-utilization a “disaster” for the industry.

Metals prices also rose on the session. In early afternoon trade in New York, August gold had added $3.20 to $655.90 per troy ounce, while July silver had gained 11 cents to $13.17 per troy ounce. July platinum was up $3.50 to trade at $1,287. Meanwhile, among base metals copper and nickel were both higher on the day in London. Declines in London Metal Exchange stockpiles of 800 tonnes sent copper up 2 percent to trade at $7,315 per tonne. Meanwhile, nickel added 4.6 percent to $41.850 per tonne.

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