Crude prices fall after spike to new record

West Texas Intermediate crude reached another new record Monday, climbing to $126.40 per barrel before falling back to $124.15 per barrel, $1.81 below Friday’s close, by just before the end of floor trade on the New York Mercantile Exchange, while Brent crude was $1.87 lower to $123.53 on the ICE Futures Europe exchange in London.

Nymex June gasoline was down 4 cents to $3.16 per gallon, while June heating oil dropped 6 cents to $3.57 per gallon and June natural gas was 24 cents lower to $11.30 per million British thermal units.

Copper prices were up Monday, pushed higher by gains in imports by China last month and by investors looking for hedges against inflation as the US dollar lost earlier gains, but advances were likely held down by postponement of a scheduled strike in Peru.

July copper added 4 cents to $3.76 per pound in New York while three-month copper added $146 to $8,246 per tonne in London.

Precious metals prices were mixed, with June gold down $1 at the end of the floor session in New York to $884.80 per troy ounce while July silver added 32 cents to $17.23 per troy ounce and July palladium was up another $18.20 to $2,120 per troy ounce.

Most grains prices were down in afternoon trade on the Chicago Board of Trade, although July wheat had gained 1 cent to $8.05 per bushel shortly after 1 p.m. there.

Prices for corn and soybeans dropped as the possibility of drier weather in growing areas of the US Midwest fed speculation that planting could go forward at an increased pace after delays due to bad weather.

CBOT July corn dropped 13 cents to $6.16 per bushel while July soybeans were down 14 cents to $13.44 per bushel.

Even rice prices fell, with CBOT July rough rice down 23 cents to $22.74 per 100 pounds after recent gains due to damage from the cyclone in Myanmar.

Story link: Crude prices fall after spike to new record