Crude prices decline as grains, metals see gains.

Crude oil prices dropped on Thursday after the US Energy Information Administration said that inventories of crude oil and gasoline were higher in the week ending 15 February.

Inventories of crude oil were up by 4.2 million barrels last week, against an expected gain of 2.9 million barrels, while gasoline stockpiles added 1.1 million barrels and distillates inventories were down by 4.5 million barrels.

April contracts for West Texas Intermediate crude had dropped $1.30 to $98.40 per barrel near the close of floor trade on the New York Mercantile Exchange.

Nymex March gasoline dropped 2 cents to $2.56 per gallon while April heating oil was also down 2 cents to $2.72 per gallon and April natural gas had fallen 5 cents to $8.92 per million British thermal units.

Metals prices were higher on Thursday on investor demand in response to fears of inflation.

April gold added $11 to $948.80 per troy ounce in New York while March silver was up 19 cents to $17.95 per troy ounce and April platinum resumed gains, adding $49.40 to $2,188.20 per troy ounce.

Early in the session, March palladium rose as high as $526 per troy ounce, its highest price since July 2001.

Among base metals, May copper added 10 cents to $3.82 per pound in New York while 3-month copper in London gained $260 to $8,410 per tonne as inventories dropped 1.6 percent on the session.

Grain futures were higher, with May corn on the Chicago Board of Trade adding 1.5 cents to $5.37 per bushel while CBOT May wheat was up 7 cents to $10.41 per bushel and May soybeans gained 7.75 cents to $14.24 per bushel.

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