Oil prices drop ahead of OPEC meeting

West Texas Intermediate crude January contracts fell $3.28 to $94.42 per barrel at the close of trade on Tuesday on the New York Mercantile Exchange, almost $5 lower than record highs above $99 per barrel set last week.

The steep decline came ahead of a meeting of OPEC oil ministers next week where analysts believe the cartel will decide to hike output in an attempt to bring oil prices lower.

Nymex December gasoline was down 7 cents to $2.37 per gallon while January heating oil fell 5 cents to $2.66 per gallon and January natural gas dropped 22 cents to $7.81 per million British thermal units.

Metals prices dropped in New York.

December gold dropped $12.50 to $814 per troy ounce on reduced demand, while December silver fell 36 cents to $14.47 per troy ounce

January platinum was down $15.10 to $1,453.50 per troy ounce after dropping to $1,452 per troy ounce earlier in the session, while in mid-morning trade March palladium had fallen $13.25 to $351 per troy ounce.

Among base metals, copper was 6 cents lower to $2.99 per pound while three-month copper on the London Metal Exchange dropped 2 percent on the session.

Grains prices on the Chicago Board of Trade were mixed, with wheat adding 17.75 cents to $8.52 per bushel after the US Department of Agriculture reported that only 44 percent of the winter wheat crop are in good or excellent condition, the worst report on crop condition in eight years.

CBOT December corn was 2.25 cents lower to $3.84 per bushel, while January soybeans dropped 12.75 cents to $10.91 per bushel.

Meat and livestock futures saw declines on the Chicago Mercantile Exchange.

January feeder cattle were down 0.38 cent to $1.1057 per pound while December live cattle fell 0.8 cent to 96.1 cents per pound.

Meanwhile, February pork bellies were 0.35 cent lower to 91.62 cents per pound and lean hogs dropped 1.05 cents to 54.55 cents per pound.

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