Oil touches new record high as most metals decline

The price of crude oil in New York hit a new record at $99.29 per barrel in early trade on Wednesday, but prices dropped after the weekly US inventory report from the Energy Information Administration showed that crude oil inventories dipped over all but grew at a key depot in Oklahoma.

January contracts for West Texas Intermediate crude closed 73 cents lower to $97.30 per barrel on the New York Mercantile Exchange, while Brent crude for January delivery fell 60 cents to $94.89 per barrel after hitting a new record of $96.53 earlier in the session.

Nymex December gasoline dropped 1 cent to $2.44 per gallon while January heating oil traded even at $2.71 per gallon and January natural gas gained 13 cents to $7.95 per million British thermal units.

In the week ending 16 November, crude oil inventories in the US dropped 1.1 million barrels even as inventories at Cushing, Oklahoma grew by 1.14 million barrels, while gasoline stockpiles were up 200,000 barrels but distillates in storage fell by 2.4 million barrels.

Precious metals prices were mixed Wednesday, while base metals prices fell.

December gold was $7.10 higher to $798.50 per troy ounce, while silver for December delivery dropped 8 cents to $14.42 per troy ounce and January platinum fell $2.50 to $1,467.20 per troy ounce.

Base metals prices fell after the US Federal Reserve forecast that economic growth in the United States could slow next year.

March copper in New York was 14 cents lower to $2.93 per pound while three-month copper on the London Metal Exchange fell $270, or 4 percent, to $6,520 per tonne.

Aluminium was $23 lower to $2,521 per tonne while zinc dropped 6.3 percent, or $150 to $2,220 per tonne and lead was down $135, or 4.4 percent to $2,915 per tonne.

Tin was $405 lower to $16,000 per tonne and nickel fell $700 to $29,600 per tonne.

Grains prices were mixed.

December wheat on the Chicago Board of Trade added its daily limit of 30 cents to $8.035 per bushel, an 11-week high, on the possibility that the dollar’s recent weakness could send demand for US wheat higher.

CBOT December corn was higher as well, adding 0.75 cent to $3.82 per bushel, but January soybeans dropped 3 cents to $10.84 per bushel on speculation that recent price increases could cut demand from overseas.

US markets will be closed Thursday for the Thanksgiving Day holiday.

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