Volatile trade takes crude prices to records before declines

Crude oil prices were lower Friday as the US Labor Department reported that 63,000 jobs were lost to the US economy in February, but not before prices jumped to record highs first as worries continued over political tensions in South America.

West Texas Intermediate crude for April delivery was down $1.27 to $104.20 per barrel at last report from the New York Mercantile Exchange, while Brent crude dropped 24 cents to $102.37 per barrel.

Earlier in the session, Brent was at a record $103.98 per barrel, while WTI jumped to $106.54 per barrel in volatile trade.

Nymex April gasoline added nearly 3 cents to $2.67 per gallon while heating oil dropped a cent to $2.96 per gallon while natural gas was 6.5 cents higher to $9.80 per 1,000 cubic feet.

April platinum prices dropped $159.10 to $2,041.70 per troy ounce after an announcement in South Africa that the state-owned utility will increase electricity supplies to producers from 90 percent to 95 percent of normal.

Other precious metals prices were mixed on the session as April gold fell $2.60 to $974.50 per troy ounce but May silver gained 3 cents to $20.25 per troy ounce.

Meanwhile among base metals, May copper added 2 cents to $3.92 per pound in early afternoon trade in New York, although three-month copper in London dropped $53 to $8,502 per tonne.

Grains prices were lower on the session.

May wheat on the Chicago Board of Trade dropped 20 cents to $11.05 per bushel on predictions that weather conditions could boost production in the US.

CBOT May corn dropped the exchange-imposed limit of 20 cents to $5.47 per bushel on the possibility that US political support for the production of ethanol will decline because it pushes prices for food and livestock feed higher.

May soybeans also dropped the exchange-imposed limit, 50 cents, on the Chicago Board of Trade to $14.08 per bushel as China canceled some contracts to buy soybean oil after Chinese prices for the oil fell from record highs.

Story link: Volatile trade takes crude prices to records before declines