Crude, precious metals prices higher; grains decline

Crude oil prices rose Monday after Venezuelan President Hugo Chavez threatened to stop selling oil to the United states after a court order last week froze assets of Venezuela’s state-owned oil company in favor of claims by ExxonMobil (NYSE: XOM).

New violence against oil facilities by militants in Nigeria and refinery shutdowns in two states due to power outages also worked in favor of higher prices.

West Texas Intermediate for March delivery added $1.80 to $93.57 per barrel while March contracts for Brent crude gained $2.19 to $94.13 per barrel.

Nymex March gasoline was up 5 cents to $2.40 per gallon while March heating oil also gained 5 cents, to $2.61 per gallon, and March heating oil added 22 cents to $8.52 per million British thermal units.

April platinum traded $55.40 higher to $1,939.40 per troy ounce in New York, another new record, and some analysts said they expect the price for an ounce of platinum to reach $2,000 by next week after Anglo Platinum (JSE: AMS) said its output is likely to decline again this year.

After going as high as $927.90 per troy ounce earlier in the session, April gold was up $4.50 to $926.80 per troy ounce, while March silver added 37 cents to $17.48 per troy ounce.

Among base metals, March copper gained 2 cents to $3.56 per pound on more declines in London Metal Exchange inventories, which have now dropped by 17 percent since the beginning of the year.

March wheat on the Chicago Board of Trade jumped its new exchange-imposed limit of 60 cents, to a new record high of $11.53 per bushel, before ending 45 cents lower at $10.48 per bushel.

Meanwhile CBOT March corn fell 4.5 cents to $5.02 per bushel and March soybeans dropped 13 cents to $13.28 per bushel.

Story link: Crude, precious metals prices higher; grains decline