Storm could threaten Gulf facilities

Crude oil ended lower on Friday even after the price of West Texas Intermediate crude rose after going as low as $70.10 per barrel early in the session.

WTI added to its price after a report that a tropical storm is beginning to form in the Atlantic Ocean that could threaten oil facilities in the Gulf of Mexico within two weeks

September WTI ended the session 12 cents lower at $71.47 per barrel on the New York Mercantile Exchange, while Brent crude September contracts finished the day at $69.77 per barrel, 44 cents lower on the Intercontinental Exchange in London on reports that daily North Sea oil shipments will go up by 14 percent next month.

Nymex September gasoline was up 2.08 cents to $1.9548 per gallon on news of the potential storm, while at-the-pump prices for gasoline in the US dropped 1.3 cents to an average of $2.801 per gallon nationally, down from their peak of around $3.22 per gallon in late May.

Nymex heating oil futures dropped 1.8 cents to $1.9712 per gallon, but the chance of a storm in the Gulf sent September natural gas contracts 23.4 cents higher to $6.82 per 1,000 cubic feet.

Wheat futures were down for the second day in a row on the possibility that demand for US wheat around the world will decline on near record-high prices recently.

December wheat was 6.5 cents lower to $6.845 per bushel on the Chicago Board of Trade, although the contract remained 2.3 percent higher on the week.

The United States Department of Agriculture said that the harvest of hard red-spring wheat would likely be at 473.5 million bushes, up from 432.3 million bushels, while harvests of durum wheat will be up by 43 percent to 76.7 million bushels.

Sugar prices were also lower, down by 3 percent on the session, as it was reported that India is ready to export more raw sugar because of domestic oversupply.

October sugar dropped 0.29 cent to 9.54 cents per pound on the New York Board of Trade.

Prices on precious metals were higher on Friday as investors looked for safe havens for their money declining equities markets and more bad news from the subprime sector.

December gold added $8.80 in New York to $681.60 per troy ounce, still 0.4 percent lower on the week, while September silver was also higher, adding 17 cents to $12.87 per troy ounce.

October platinum was up $4 on the session, to $1,279.30 per troy ounce on increased demand, a gain of 12 percent this year, while palladium dropped $4 on the session to trade at $358.20 per troy ounce.

Among base metals, September copper held steady at $3.36 per pound in New York.

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