WTI up on rate cut, equities gains

Crude oil prices gained on the session Wednesday after the Federal Reserve cut US interest rates to 3 percent, although some analysts made the distinction that the gains were not due to the Fed’s decision itself, but came after equities markets gained on the news.

West Texas Intermediate crude for March delivery added 69 cents to close at $92.33 per barrel on the New York Mercantile Exchange.

Nymex March gasoline added about half a cent to $2.377 per gallon while March heating oil was up 1 cent to $2.54 per gallon and March natural gas gained 8.7 cents to $8.03 per million British thermal units.

The US Energy Information Administration reported that US crude oil inventories grew by 3.6 million barrels in the week ending 25 January while gasoline stockpiles were also up by 3.6 million barrels but distillates in storage were down by 1.5 million barrels.

The price of gold added $4.70 to $935.50 per troy ounce in electronic trade on Wednesday after the Federal Reserve cut interest rates to 3 percent after having been down by $4.50 to $926.30 per troy ounce at the end of floor trade in New York.

March silver was also up after the decision, going from 4 cents lower on the session to $16.76 per troy ounce at the close of floor trade to 10 cents higher at $16.90 per troy ounce.

Copper was higher after the Fed’s decision, but remained lower on the session by 3 cents over Tuesday’s close to $3.26 per pound as investors still worried about demand.

Before the close of floor trade, April platinum was down $34.50 on the day to $1,687.40 per troy ounce.

Grains prices remained mixed in Chicago.

March wheat on the Chicago Board of Trade was lower again, dropping 21 cents to $9.22 per bushel on expectations that Argentina will end export restrictions next month.

CBOT March corn was also lower, falling 2.5 cents to $4.98 per bushel but March soybeans added 10.75 cents to $12.77 per bushel.

Story link: WTI up on rate cut, equities gains