Falling crude inventories send prices higher

Reports from the US Energy Information Administration reported that crude oil inventories dropped significantly last week, sending crude oil prices higher.

February contracts for West Texas Intermediate crude up $1.52 to $91.60 per barrel an hour before the close of floor trade on the New York Mercantile Exchange, while Brent crude for February delivery added $1.07 to $91.19 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade Nymex January gasoline was up 3 cents to $2.33 per gallon while February heating oil gained 5 cents to $2.60 per gallon but March natural gas dropped 11 cents to $7.21 per million British thermal units.

The EIA said that crude stockpiles dropped by 7.6 million barrels overall in the week ending 14 December, while heating oil stockpiles also declined, by 2.1 million barrels to 129.4 million barrels but gasoline inventories jumped by 3 million barrels.

Base metals prices were mixed but mostly higher on Wednesday.

March copper added 7 cents to $2.96 per pound in New York, while three-month copper was $135 higher to $6,515 per tonne in London.

Aluminium added $17 to $2,428 per tonne while lead was up $71 to $2,526 per tonne and nickel gained $750 to $26,650 per tonne.

Zinc was $7 lower to $2,308 per tonne, while tin remained untraded on the session but was quoted in a range around $16,150/$16,160 per tonne, up from Tuesday’s quote.

Meanwhile, among precious metals, February gold dropped $1.70 in New York to $805.70 per troy ounce while March silver added 6 cents to $14.22 per troy ounce and January platinum gained $8.50 to $1,523.80 per troy ounce.

Grains prices were higher in afternoon trade.

March corn on the Chicago Board of Trade added 2.75 cents to $4.35 per bushel while March soybeans were up 9.25 cents to $11.78 per bushel and March wheat gained 21 cents to $9.73 per bushel.

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