Oil prices drop as most metals gain

Crude oil prices in New York and London hit new records before falling back to declines for the session on US inventories reports that exceeded expectations.

The US Energy Information Administration reported that crude oil stockpiles were up by 3.2 million barrels in the week ending 22 February, while gasoline inventories added 2.3 million barrels but distillates stockpiles were down by 2.5 million barrels.

April contracts for West Texas Intermediate crude dropped 1.23 to $99.64 per barrel after going as high as $102.08 per barrel, a new record, while Brent crude for April delivery fell $1.20 to $98.21 per barrel after setting a new record at $100.53 per barrel earlier in the day.

Nymex March gasoline was 6 cents lower to $2.49 per gallon while April heating oil fell 4 cents to $2.75 per gallon and April natural gas dropped 18 cents to $9.07 per million British thermal units.

Precious metals prices were mixed, with April gold up $11.80 to $960.70 per troy ounce in New York and May silver adding 48 cents to $19.32 per troy ounce but April platinum dropping $3.90 to $2,152 per troy ounce.

Base metals prices saw gains, with May copper 6 cents higher in New York to $3.83 per pound while three-month copper added $125 to $8,400 per tonne in London on falling stockpiles in London Metal Exchange warehouses.

Three-month tin hit a record $18,140 per tonne and was trading at $18,000 per tonne in afternoon trade in London after its inventories were also lower, while three-month aluminium was also up, trading at $3,129 per tonne, and zinc added $183 to trade at $2,678 per tonne.

Grains prices were mixed as May wheat on the Chicago Board of Trade added 35 cents to $12.50 per bushel, but CBOT May corn dropped 6 cents to $5.38 per bushel and May soybeans were 9 cents lower to $14.76 per bushel on the possibility that farmers will plant more corn and soybean crops, raising output and inventories.

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