Crude oil prices gain on inventories report

Crude oil prices were higher Wednesday after the US Energy Information Administration reported that stockpiles were down by 3.8 million barrels to 318.8 million barrels in the week ending 14 September.

The report also showed, however, that gasoline inventories were up by 400,000 barrels last week and distillates, which includes heating oil and diesel fuel, added 1.5 million barrels to storage.

Near the close of floor trade on the New York Mercantile Exchange, West Texas Intermediate crude for October deliver had added 42 cents over Tuesday’s close to $81.93 per barrel, while Brent crude was up 41 cents to $78.49 per barrel on the Intercontinental Exchange in London.

Nymex October gasoline was up 3 cents to $2.09 per gallon, while November heating oil traded even at $2.26 per gallon and November natural gas was down 32 cents to $6.91 per million British thermal units.

Among agricultural commodities, December corn on the Chicago Board of Trade added 6 cents to $3.58 per bushel on the possibility that farmers will abandon it to plant more wheat and soybeans due to the much higher prices those grains have commanded recently.

November CBOT soybeans were also higher, gaining 1.5 cents to $9.71 per bushel, but CBOT December wheat fell 24 cents to $8.45 per bushel .

March sugar on the New York Board of Trade was 0.38 cent higher to 9.99 cents per pound on speculation that Brazil will devote more of its cane harvest to the production of ethanol as crude oil prices remained in record high territory.

Base metals prices saw substantial gains as investors hoped that the US Federal Reserve’s move to cut interest rates Tuesday would provide a solution to global economic woes and raise demand for the metals.

Copper was up 13 cents to $3.58 per pound in New York after having gone as high as $3.605 per pound earlier in the session, while three-month copper on the London Metal Exchange added $315 to $7,895 per tonne after trading as high as $7,930 earlier in the day.

Three-month nickel on the LME was up $3,300 to $34,050 per tonne for its biggest one-day gain in 19 years.

.Among other base metals, aluminium added $98 to $2,505 per tonne while tin was up $265 to $15,275 per tonne, zinc added $144 to $2,984 per tonne, and lead jumped $100 to $3,240 per tonne.

Precious metals prices were higher in New York on the assumption that the rate cut would weaken the US dollar and send more investors to metals.

December gold added $5.80 to $729.50 per troy ounce, while December silver was 18 cents higher to $13.11 per troy ounce.

October platinum was up $1.80 to $1,308.50 per troy ounce, while December palladium gained 80 cents to $336.50 per troy ounce.

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